You have probably just browsed "Op40", one of the two most
popular investment products of Key-Volume Strategies Inc (KVS). We
are in our 39th year of publication. We do not update our web site frequently
because we are in daily contact with subscribers and system purchasers through telephone
and email hotlines, thus our subscribers and system users are updated
continuously. Our web site serves the purpose of initial contact,
so you know what we offer and how long we've been serving Wall Street. We
also publish the KVS Market Releases every 4 to 6 weeks, mainly for
technical education and timing, and special features on systems and tools.
More about them below.

The other of our two most popular
products is the just mentioned KVS Market Service which produces our Market
Releases and special features. Projected market tops and bottoms are coordinated
with the trading of index options.
After you finish this introductory letter and browse further, you'll see
several full recent market releases, as well as excerpts from earlier
releases thru the years, so you may get a seasoned feeling of confidence.
Once a month the second part of the release features an Op40 performance
update, and Q & A for system users.

As you gradually become familiar with our
work, you'll notice that through these many challenging and eventful years of
market rises and declines, our main thrust has been technical innovation.
What we offer is exclusive to our subscribers and system users. Options
"40 In 4" which we nicknamed Op40 is a standalone
product to trade SP100 (OEX) calls and puts regularly, with a remarkably small
amount of daily attention. The trading edge formula of Op40
does not even require a computer, and no option watching during the
day is called for!

"Op40" has started its
13th year!
Because of this milestone event, the first release we're displaying below is
#955, an early copy soon to be supplemented with an update on Magnetic Bands. The table of
these bands enables users to do their buying in the strongest support bands, and their selling in the strongest resistance bands. --- As you go
through the Anniversary Q&A
you'll find 4 special offers. They're presented in Q&A pair #11. Add 1 month to the offer of your choice as a bonus for
ordering Op40, or an extension of your current KVS services, on the occasion of
our anniversary.

We have
completed our last DTE2008 performance task, to maintain a +25% or better trade
average in an environment of “unpredictable” whipsaws. The task was to
recognize unusually high risk of loss in
advance, and bypass the responsible signals. Period #16 in the 10 month
summary below (Oct 2007 into Aug 2008) presented no fewer than 5 real life test
cases for the “inevitability” of loss. Indeed, actual trades incurred losses,
but our Loss Bypass Screen, developed and back tested as part of this
last task, ignored these signals and bypassed the losses. Retroactive
application to periods before #16 would have enhanced returns further, but we
felt that period #16 by itself sufficed as a proving ground.

Your
first Bonus as an Auto Trader will be a detailed description of how “inevitable”
loss can be recognized in advance, and side stepped. In your auto trade account, recognizing and
side stepping such a high risk profile will be evident from the absence of
trade recommendations for certain days. Trade omission rationale will be
amplified by educational footnotes. You won’t need to take any special action,
the auto trade process will simply not allow certain signals to generate
trades. But if you have one or more other trading accounts that you manage
yourself: then knowing the Loss Bypass
Screen may well become one of your most appreciated assets. --- Here is
your 10 month DTE2008 snapshot: it was during this period that the Dow fell
20% (even increased it to 25%), and thereby issued a traditional Bear
Market signal:

PERIODSIGNALRANGE #OF
SIG Q% R% COMPOS CUMUL CUM SIGS CUM AVGE

====== ============= ======= ==== ==== ====== ===== ========
========

1 OCT 31-NOV 14
11 +265 +295 +280% + 280%
11 + 25%

2 NOV 15-NOV 30
11 +139 +183 +161% + 441%
22 + 20%

3 DEC 3-DEC 17
11 +297 +183 +240% + 681%
33 + 21%

4 DEC 18-JAN 4
11 +241 +259 +250% + 931%
44 + 21%

5 JAN 7-JAN 22
11 +397 +889 +643% +1574%
55 + 29%

6 JAN 23-FEB 6
11 +551 +562 +556% +2130%
66 + 32%

7 FEB 7-FEB 22
11 +153 + 6 + 80% +2210%
77 + 29%

8 FEB 25-MAR 10
11 +310 +384 +347% +2557%
88 + 29%

9 MAR 11-MAR 26
11 +331 +404 +368% +2925%
99 + 30%

10 MAR 27-APR 16
11 +162 +625 +393% +3318% 110 +
30%

11 APR 17-MAY 2
13 +224 +563 +394% +3712% 123 +
30%

12 MAY 5-MAY 21
11 +168 + 84 +126% +3838%
134 + 29%

13 MAY 22-JUN 6
12 + 96 +326 +211% +4049% 146 +
28%

14 JUN 9-JUN 24
11 +152 - 41 + 56% +4105% 157 +
26%

15 JUN 25-JUL 14
11 +233 + 67 +150% +4255% 168 +
25%

16JUL 15-AUG712+187 +535+361% +4616%180+ 26%

The
last entry in the record, in the three right columns, shows that the cumulative
gain on 180 traded signals was +4616%. The average gain was +26%: 4616 divided
by 180. If you trade index options systematically, with daily attention, this
should not surprise you. Anticipating your questions:How
long does a trade last? One to 4 sessions. How does KVS get a signal?
By analyzing price patterns and market movements daily, using original KVS
formulas. How does KVS share the signal with its system users? By email
near 10PM ET. The email advises, for next day: specific option;
specific buy price; specific sell price.If the option is still held at
the end of the next day: that night's email advises a new sell price,
or stays with the previous.

Which
index and expiration month does KVS use? All signals are for specific SP100 ("OEX")
options, expiring in the current month, unless the time left is less than 2
weeks; in that case the following month is picked. "Can I substitute a
different index, if I think it will do better?" SP100 price action
correlates well with the price action of other indices. If KVS recommends a
call, you buy a call as well, on your chosen index. If KVS
recommends a put, you buy a put as well, on your chosen index. Track KVS
results, and your own, for a few days. Be satisfied that you're
getting comparable gains. Typically:

The KVS
option choice achieves +30% to +40% on a winning trade. Losses are no more than
4 out of 11. Average loss is less than average gain. These results should
be what you get from your chosen index as well, as a minimum. If your choice under performs the KVS choice
more often than not: raise or lower your strike price, till your
performance is on par. Or simply trade the exact options KVS
chooses: any stock broker can buy and sell OEX options, and no margin is
needed. Starting capital of $3000 to $5000 is common.

Why
does KVS measure its system performance in groups of 11 to 13 signals? It takes 2 weeks, sometimes an
extra day or two, to get 11 trading signals. Summarizing results for 2 weeks at
a time enables frequent performance
comparisons, reflecting the system's ability to be consistently
profitable, ranging from highly profitable as periods 5 & 6, to modestly or
marginally profitable as periods 7 & 14.

Do
the results for 10 months suggest a trend? Yes. Note in the last column that the average
exceeded +29% for 4 periods (#6, 9, 10, 11), then eased down into the 20's,
ending on an up tick with the current +26%. Since DTE2008 was designed to do
particularly well in a recessionary or "Bear Market" environment, the
fact that results have moved beyond their peaks indicates that the
strong hold of the bear has been weakening. If you prefer to trade call options
to puts, to benefit from a rising market and improving economy, you'll find
that the daily signal mix will gradually shift more and more to favor call
options, and puts will return to their traditional role of capitalizing on
downside reactions.

Time to favor a veteran "all weather" system like Op40
again, in its 13th year?We welcome new and
renewing users to either system. After the Short
Term Market Cycles update, you’ll find several pages on “Op40”, the “do it yourself” trader’s option system.

Should you prefer that a broker
familiar with KVS trade a system for you: choose DTE2008 because it is a
specific entry & exit vehicle, thus especially suitable for Auto Trading.For details: send an email to kvshotlines@aol.com.
Include your phone number, and say you're interested in trading DTE2008. We'll
respond with the contact information, email and phone, for our Auto Trade broker. You make your own contact for account setup, and
information on rebates based on trading frequency, to reduce or eliminate your cost. These
are pre-requisites, so that KVS may provide the daily trading advice to the
broker:

You need to be a current or new
KVS/DTE2008 subscriber. Choose from the special offers below. The $544 offer
for 6 months includes a $155 administrative fee. If you’re a current
subscriber, with 6 or more months KVS/DTE2008 service left, then you can start
with the $155 administrative fee as your only expense. These fees are
exclusively for KVS, as provider of the daily advice by email. Same advice is
provided to our Auto Trade broker, the night before each trading
day, and to individual subscribers who do not Auto Trade.

After you have your response
from our Auto Trade broker: Decide
whether you wish an Auto Trade arrangement, and before
your trading account is set up, take care of your KVS subscription or
administrative fee by email: kvshotlines@aol.com. For those who also
wish to phone, our System Support number has 24 hour voice mail: 877-350-3796.

=================================================================

** What are the current special offers for Op40 and DTE2008,separately or together? If you are not a KVS
system or email hotline user yet: DTE2008 is $544 with 6 months nightly email.
KVS Market Timing, with Dow (DJI) targets in both directions, updated
daily, is a separate extrafeature provided at no
charge. Op40 is $545 with 4 months nightly email. Longer term
Op40 offers are not available because of quota. You're welcome to both the
$544 and $545 offers as a combo, with an 11% discount. Extra bonus with the
combo: 2 more months of Op40 email, so you'll have the same duration for
the nightly email of both systems. Cost of this 6 month package: $969. Review
above whether you’re eligible for the $155 fee only.

** Introduction to KVS features, with Q&A: If you clicked on the Auto Trade link on the KVS web site
to get here, this took you on a shortcut past informative text which we
recommend that you read now, by scrolling back to the beginning of "KVS
#957 Fall 2008".

Short Term Market Cycles: New “Bear Phase”
Coming; Profits Taken on Previous Recovery

These cycles were discovered by KVS in early 2007. They are
tracked on the nightly KVS Market
Hotline: a second nightly email for DTE2008 subscribers and Auto Traders.
This is a bonus in addition to the Loss Bypass Screen.

Each short term market cycle consists of three phases:1. Bear Phase,2. Turnaround Phase,3. Recovery Phase.Next on the agenda is a new Bear Phase. It will be signaled by a 240
point or larger down closing by the Dow (DJI). Might you have to wait quite a
while for that? Not likely. The average
interval between Bear Phase signals has been 22 calendar days, and the last
such signal occurred on July 28. What came next? The Turnaround Phase followed unusually quickly, the next day. Its
entry formula suggested buying at DJI 11265. This was accomplished on August 1,
and the Recovery Phase was in force.
Its profit taking formula targeted 11681 for a gain of +416 points. Profits are
normally in the 400 to 600 points range.

On Aug 6 the profit materialized, and an extended recovery
followed. We needed to use other KVS market tools to project a goal above
11681. The KVS Market Hotline uses
several such tools regularly. It announced that based on our special work with Big 1
Day Changes (DJI 90 points or more at the close), a further rise into the 11932-11947 range is
justified. On Aug 11 this range was reached, with a theoretical high of 11934.
Theoretical highs and lows on the Dow are more accurate measures of overbought
and oversold extremes than the actual numbers that you see on computer and TV
screens all day. Theoretical numbers become available shortly after the close.
We get them from the CBOE, which is also our source for option prices.

Just two sessions past the 11934 high, the DJI was already
back down to 11377, a substantial 557 points. This swift drop was punctuated by
single day down closings of -140 and -110 points. That was a total of -250. Are
we in a new Bear Phase? No, we did
not get a single day down closing of -240 or more negative. So the wait
continues. Meanwhile the KVS Market
Hotlinekeeps its users well
supplied with market targets in both directions. And for option traders, DTE2008
and Op40
leave little room for inactivity. The balance of this report focuses on Options
“40 In 4” (Op40), including a 13th anniversary Q&A

Already in its 13th
year, Options "40 In 4"("Op40") continues to exceed both its long term
goals:1. A 75% win ratio:3 of 4
trades producing gains.2. An average
rise of +24% peroption, within 4
sessions.We set the second goal by
targeting this sequence for 4 consecutive, representative signals:+40%
... +40% ... +40% ... and -25% ...(+120 - 25 = +95,and+95/4 = +24).How goals have been surpassed is shown below and on the next page,
summarizing all performance periods to date.Each period is normally 25 calendar days but may vary slightly with our
publication schedule.

--- TRADING ---WIN:LOSS-- SIGNAL PERFORMANCE --TOTAL

PERIODSIGNALSRATIOTOT % RISEAVGE % RISE"RPS"

1-11716051269:336+54540%+ 34%1363.5

1181411: 3+ 480%+ 34%12.0

119117: 4+ 160%+ 15%4.0

120138: 5+ 180%+ 14%4.5

1211110: 1+ 500%+ 45%12.5

12217 11: 6+ 460%+ 27%11.5

1231311: 2+ 740%+ 56%18.5

1241411: 3+ 520%+ 37%13.0

1251412: 2+ 680%+ 48%17.0

1261410: 4+ 360%+ 26%9.0

127129: 3+ 200%+ 17%5.0

1281511: 4+ 520%+ 34%13.0

1291916: 3+ 420%+ 22%10.5

1301513: 2+ 440%+ 29%11.0

1311411: 3+ 400%+ 29%10.0

1321412: 2+ 580%+ 41%14.5

1331411: 3+ 560%+ 40%14.0

134158: 7+ 120%+8%3.0

1351511: 4+ 420%+ 28%10.5

1361614: 2+ 640%+ 40%16.0

1371310: 3+ 280%+ 22%7.0

138118: 3+ 320%+ 29%8.0

1391512:
3+ 640%+ 43%16.0

140179: 8+ 200%+ 12%5.0

1411612: 4+ 420%+ 26%10.5

1421510: 5+ 320%+ 21%8.0

1431510: 5+ 440%+ 29%11.0

1441312: 1+ 700%+ 54%17.5

1451712: 5+ 580%+ 34%14.5

146129: 3+ 460%+ 38%11.5

1471412: 2+ 540%+ 39% 13.5

148139: 4+ 360%+ 28%9.0

149128: 4+ 440%+ 37%11.0

150128: 4+ 260%+ 22%6.5

1511312: 1+ 680%+ 52%17.0

152 1311: 2+ 300%+ 23%7.5

1531411: 3+ 500%+ 36%12.5

1541411: 3+ 420%+ 30%10.5

1551311: 2+ 560%+ 43%14.0

156139: 4+ 280%+ 22%7.0

157138: 5+ 300%+ 23%7.5

1581412: 2+ 540%+ 39%13.5

1591410: 4+ 360%+ 26%9.0

160128: 4+ 240%+ 20%6.0

1611513: 2+ 680%+ 45%17.0

162128: 4+ 160%+ 13%4.0

1631310: 3+ 400%+ 31%10.0

1641510: 5+ 260%+ 17%6.5

16596: 3+ 300%+ 33%7.5

1661513: 2+ 680%+ 45%17.0

167119: 2+ 420%+ 38%10.5

ALL 167 22981792:506+75960%+ 33%1899.0

____________________________________________________________

The 78% win ratio (1792 gains/2298
signals) exceeds the 75% goal. Average +33% rise (75960/2298) exceeds the +24%
goal.So results are not skewed by very
large rises, we limit them to +100%, and in computing RPS (Rated Performance Score)we make +80% the max (RPS = 0.5 for every 20%).The system prevents trades likely to
underperform, limiting some periods to10 trades.Next pages:recent record trade by trade.Anniversary
Special!Order Op40 at the 1996 Charter rate andreceive besides:3 months toll free voice,orEmailhotline.Special combo $545. To include “9 to
1 Edge Finder” (see other page) add only $130, total $675.Hotline is your daily price source and learning aid, with complete
price data for the two SP100 options (one call, oneput) whose price action produces the exclusive Trading
Edge.Hotline computes the edge as well!

KVS #957,”Op40” periods
#162-168

OP40TRADEOPTIONTRDG% RISE AT LEASTRISEMIN % LOSSPERFORMANCEAVGROSE

SIGNALSEQCHOICEEDGE+20+40+60+80<20%-1 -40–60RPSCUMULBUY TO

JAN311FEB665C7..+40............+ 1.0+ 1.02.703.80

FEB
1+2“”8..........-65....- 1.5- 0.52.070.65

43FEB660C4..........-65....- 1.5- 2.00.900.30

54MAR530P7..+55............+ 1.0- 1.02.554.00

6+5“”10+20..............+
0.5- 0.53.173.80

76“”6+20..............+ 0.50.02.773.30

8(P)1................0.00.0

11(C)2................0.00.0

127MAR670C5..........-3....- 0.5- 0.52.422.35

13+8“”8..........-6....- 0.5-
1.02.502.35

149“”7..+50............+ 1.00.01.572.35

15(C)2................0.00.0

19(P)3................0.00.0

2010MAR660C4..+45............+ 1.0+ 1.02.253.30

2111MAR560P6..+40............+ 1.0+ 2.02.203.10

22(C)2...... ..........0.0+ 2.0

2512MAR660C8......+85........+ 2.0+ 4.0

***PERIOD 162:RATED PERFORMANCE MONITOR……………………………………………………+ 4.0

***SIGNALS FLAGGED +ENHANCED BY “9 TO 1 EDGE FINDER” (more below)

FEB261MAR660C9....+60..........+ 1.5+ 1.52.103.40

27+2“”10..+40............+ 1.0+ 2.51.892.70

28(P)2.. ..............0.0+ 2.5

293MAR565P8......+90........+ 2.5+ 4.52.154.10

MAR
34“”3...... +100........+ 2.0+ 6.52.054.10

4NONE0................0.0+ 6.5

5(C)2................0.0+ 6.5

65MAR565P6....+55..........+ 1.0+ 7.52.473.90

76“”6....+50..........+
1.0+ 8.52.553.90

107APR510P10......+80........+ 2.0+10.51.482.70

118APR660C4........+12......0.0+10.51.972.20

12(P)3................0.0+10.5

13+9APR660C5....+65..........+ 1.5+12.01.332.20

1410APR510P5.............. -70- 1.5+10.53.000.80

1711“”7.............. -65- 1.5+ 9.01.270.40

1812APR550P4...... +100........+ 2.0+11.02.254.70

1913APR530P6............-55..- 1.0+10.01.750.75

20(C)6................0.0+10.0[2.50] ....

***PERIOD 163:RATED PERFORMANCE
MONITOR……………………………………………………+10.0

MAR241 APR660C7.............. -60- 1.5- 1.52.250.80

25(P)1................0.0- 1.5

262APR570P4..+45............+ 1.0- 0.52.353.40

273“”5..+45............+ 1.0+ 0.52.303.40

28+4“”7.............. -65- 1.5- 1.02.450.80

315“”7............-45..-
1.0- 2.01.000.55

APR
16APR655C6........+18......0.0- 2.02.452.90

2+7“”4..+45............+ 1.0- 1.01.972.90

38“”7....+60..........+ 1.5+ 0.51.552.50

4(C)1................0.0+ 0.5

7(P)1................0.0+ 0.5

8(P)3................0.0+ 0.5

99MAY570P4......+90........+ 2.0+ 2.52.534.90

10(C)4................0.0+ 2.5

1110MAY550P6.............. -65- 1.5+ 1.02.280.80

1411“”6............-50..- 1.00.01.070.50

15NONE0................0.00.0

1612MAY655C2...... +100........+ 2.0+ 2.02.326.40

17+13“”6..+40............+ 1.0+ 3.04.606.40

18+14MAY665C7....+60..........+ 1.5+ 4.51.923.10

2115“”4......+95........+ 2.0+ 6.51.583.10

***PERIOD 164:RATED PERFORMANCE MONITOR……………………………………………………+ 6.5

Companion System to “Op40”:
“9 to 1 EdgeFinder”:While the “9 to 1 Edge
Finder” (called “9 to 1” for short) has its own trading rules and can be traded
as an independent system, it gives relatively few signals, and is most suitable
as an enhancer for Op40. When both systems give a trading signal for the same
option, consider investing a larger amount than you’d commit typically.Signals flagged by + (plus sign) qualified
for this technique in the 3 periods above, and more on the next pages. In
total, the last 6 of 7 performance periods are final, and the 7th (#168)
is previewed, incomplete as we write this.

Total “RPS” points for the
flagged signals were 8.5, counting Op40 signals alone. Committing 1.5 times the
usual capital, to utilize Op40 and “9 to 1” teamwork, increased RPS points to 13.0.
Each RPS point represents a 40% to 59% gain. Counting the minimum 40%:Total Op40 percent result for the flagged
signals was +340%. Total from Op40/9 to 1
teamwork for the same signals was +520%.

The previous page gives long
term results and includes a special offer for the two-system combo. Notice that
the difference is modest: $545 for Op40 with 3 months nightly email hotline
(comes by 8:30PM ET before each trading day), and $675 including the “9 to 1
Edge Finder” with its own email hotline the same days. The remaining two pages,
which complete Rel #957, include additional insights into “9 to 1”, see Q9 of
the “Anniversary Q&A”.

KVS #957 continued

OP40TRADEOPTIONTRDG% RISE AT LEASTRISEMIN % LOSSPERFORMANCEAVGROSE

SIGNALSEQCHOICEEDGE+20+40+60+80<20%-1 -40–60RPSCUMULBUY TO

APR22+(P)2................0.00.0

23+1MAY665C3+100........+ 2.0+
2.01.623.10

242“”3...... +100.. ......+ 2.0+ 4.02.024.70

253“”4...... +100........+ 2.0+ 6.02.034.70

284“”4...... +100........+ 2.0+ 8.01.574.70

29+(P)4................0.0+ 8.0

30+5MAY605P4............-40..- 1.0+ 7.01.070.60

MAY
1(C)4................0.0+
7.0

2+(P)1................0.0+ 7.0

5+6JUN590P4..+45............+ 1.0+ 8.02.573.80

67JUN690C6..........-16.. ..- 0.5+
7.50.890.75

78 JUN590P7..........-19....- 0.5+ 7.03.202.60

8(P)2................0.0+ 7.0[3.20]

9+NONE0................0.0+ 7.0

12+(C)3................0.0+ 7.0

13NONE0................0.0+ 7.0

14(C)1................0.0+ 7.0

159JUN675C6+30..............+ 0.5+ 7.52.753.60

16NONE0................0.0+ 7.5

***PERIOD 165:RATED PERFORMANCE MONITOR ……………………………………………………+ 7.5

***SIGNALS FLAGGED +ENHANCED BY “9 TO 1 EDGE FINDER” (more below)

MAY191JUN675C3............-50..- 1.0- 1.00.910.45

202JUN605P6...... +100........+ 2.0+ 1.02.305.00

213JUN595P7..+55............+ 1.0+ 2.02.253.50

22+4“”4..+45............+ 1.0+ 3.02.423.50

23 5“”7...... ..+ 6......0.0+ 3.02.352.50

276JUN660C6....+70..........+ 1.5+ 4.51.522.60

287“”4....+70..........+ 1.5 + 6.0

298“”9..........-35....- 0.5+ 5.51.971.20

30(C)1................0.0+ 5.5

JUN
29JUN600P5...... +100...... ..+ 2.0+
7.51.675.20

3+10“”7...... +100........+ 2.0+
9.52.355.20

411“”4...... +100........+ 2.0+11.51.525.60

512JUN615P4...... +100........+ 2.0+13.53.05 10.30

6 13JUN590P4....+60........ ..+ 1.5+15.02.07 3.30

9(P)1.............. ..0.0+15.0

10+(C)3...... ..........0.0+15.0

1114JUL550P4+25.... ..........+ 0.5+15.52.753.45

1215“”6....+60..........+ 1.5+17.01.87 3.00

13(9)1................0.0+17.0

***PERIOD 166: RATED PERFORMANCE MONITOR……………………………………………………+17.0

JUN161JUL650C2.............. -65- 1.5- 1.51.770.60

172JUL555P4....+60..........+ 1.50.02.133.50

183“”8....+65..........+ 1.5+ 1.52.073.50

194“”4....+60..........+ 1.5+ 3.02.774.50

205“”6....+75........ ..+ 1.5+
4.52.554.50

23(P)1................0.0+ 4.5

24(C)1................0.0+ 4.5

256JUL625C5........- 8......- 0.5+ 4.00.600.55

267JUL540P6..+45............+ 1.0+ 5.01.872.55

27(P)1.. ....
..........0.0+ 5.0

30(P)1...... ..........0.0+ 5.0

JUL
18JUL610C6+35..............+ 0.5+ 5.50.951.50

29JUL540P6....+60..........+ 1.5+ 7.01.602.55

3(P)1................0.0+ 7.0

710AUG500P3....+60........ ..+ 1.5+ 8.51.472.40

8(C)2................0.0+ 8.5

911AUG510P6...... +100........+ 2.0+10.52.756.50

10(C)3...... ..........0.0+10.5

***PERIOD 167: RATED PERFORMANCE MONITOR……………………………………………………+10.5

Preview
of Period #168, into August:Our next report will
begin with period #168 and end with #170. Meanwhile, the bulk of period #168 is
already behind us, so we cangive you
preliminary statistics now.

When period #168
is finished, we expect its results to be very close to this:

Number of
signals = 16 or 17.Winning signals = 10
or 11.Total RPS = 9 to 11.Total % achieved = +380 to +440.To learn more about “RPS”, review Q4 thru Q6
and their answers, in the Anniversary
Q&A on the final page of Rel #957.

Long term win
ratio will remain 78%.Long term average
per trade will remain +33%.Thank you for choosing KVS products.

Q1: What determines the option choice?A1: “TE” the Trading Edge. It does double
duty. The same time it tells you whether the signaled direction favors a call
or a put, it names exactly which call or put. KVS knows from many years
of experience that SP100 (OEX) options, that last closed in the 1.50-3.50
range, and expire in the current month with at least 2 weeks left to
expiration, are the best candidates for 1 to 4 day trades for 40% profit or
more.

Q2: Can you go a little further into
computing “TE” ? What data does the formula need? A2: Two options in the price range just
mentioned, a call and a put, are handed over every evening to the “TE” formula,
for a few price comparisons. Only the day’s open, high, low, and closing prices
are used. Percent differences, between certain prices in this “data base” of
only 8 prices, are converted by the formula into values normally in the 0 to 10
range. Values are summed separately for the call and the put. The option with the higher sum has the edge.
In case of a tie: TE = 0 and there’s no trading signal for next day.

Q3:
If I’d rather not compute the TE myself, can I get it already computed, from
the hotline?A3: Yes, you can.The most liked feature of the hotline, your choice
of voice or Email, is that it gives you already determined values and
decisions.

Q4: The Performance columns, on the
signal summary pages, show two values. Do these numbers evaluate the
performance of each signal? Are they like a “report card” for the system?A4: A good name! The left number is the
grade that Op40 gets for handling the signal, profitably or not. We call this
grade “RPS” (Rated Performance Score): it rates Op40 performance with ascore. The right number “CUMUL” cumulates
the individual scores for a full performance period, commonly 4 weeks.

Q5: Can you give an example or two for the
scoring? A5: For every 20% the option rises, RPS =0.5. For a 40% rise, on
up to 59%, RPS = 1. For a 60% rise, on up to 79%, RPS = 1.5. For an 80% or larger
rise, RPS = 2. With RPS values included, the signal tracking format not only
shows the price advances (and occasional declines), but areport
card for Op40 as well.

Q6: Where do you measure the price rises
from?A6: From the average buy price
for the given signal. It is the mid point between the next day’s opening, which
is your first opportunity to act, and the day’s low, the best available price.

Q7: If I recall right from previous Op40
descriptions: you chose the full name “Options 40 In 4” because the system
objective is a 40% or larger gain within 4 sessions?A7: Yes, exactly. Relatively few gains turn
out to be less than 40%, and there’s an occasional loss. Per trade average over
the long run has been +33%, see the summary for 168 periods on previous pages.

Q8: I see a percent size breakout of the
results. Why not show it all in one column?A8: Most system users like to see how the small, medium, and large
returns are distributed, for an easy scan of relative frequency. The “RPS”
numbers are all in a single column: multiply by 40, and that’s the
percent Op40 gets credit for, not to exceed 80%. That’s the practical limit,
because traders seldom try for more, with such quick turnaround, 4 days or
less.We do show rises up to 100%, but RPS =2 is
max.

Q9: The record shows Op40 doing quite well,
and for a long time now. Why use a second system to enhance Op40? A9: The “9 to 1
Edge Finder” (short name “9 to 1”) started in 2000. It uses the same
options as Op40 in its signal logic and buy/sell formulas, but with different
emphasis: accept fewer signals, but each with a 90% probability of profit
within 3 sessions. Teamwork has been
beneficial for both systems, here’s an excerpt from previous summaries for the
5 ways it has worked:

There have been 5 ways for
teamwork to enhance results:1. Op40 paused, TE (Trading Edge) was low, but
“9 to 1” traded. 2. Op40 had a signal in one direction, “9 to 1” had one in the
other direction. To assure sufficient volatility for profit in both
directions: “9 to 1” checks how high TE is, and if it’s 7 or above it yields to
Op40 without trading its own signal. 3. “9 to 1” bought twice.4. Op40 loss prevented or offset by“9 to 1”.
5. Both systems chose the same option, suggesting higher $ commitment.

Q10: I misplaced the 1996 charter offer. Am
I still entitled to it to get your lowest rate? A10: We’re celebrating the 39th
year for KVS (Key-Volume Strategies) and 13th year for Op40. You’re
welcome to the 1996 charter offer, restored for 15 days. Review the Op40 introduction,
which includes the charter offer, on our web site: www.key-volume.com.

Q11: How do I get started?A11: Each offer includes system
instructions, step by step: choosing your option, buying your option, selling
your option. You also get nightly hotline for 3 months, your choice of voice or
email. Order with credit card for fastest start (Visa, Master Card, American
Express), or mail a check. Specify A or B, or if you already have Op40: C or D.

Choose from the special offers
below, by email to kvshotlines@aol.com
or by calling 800-334-0411 x12K. We’ll be prompt! Mail orders: Key-Volume
Strategies Inc, 46 E. Lincoln Ave,
White PlainsNY10604. Thank you for choosing KVS! We’re proud of39 years of systems and services.

Offer “C”:If you already
have the Op40 system: “9 to 1” system, with 3 months hotline for both systems,
$395.

Offer “D”: If you already have both systems: 3 months hotline for
both systems (extension or renewal) $265.

Anniversary Bonus!Add 1 month
to the offer of your choice. To assure this bonus, do order within 10 days .
Thank you!

KVS #955 review

*********************************************************************

"OPTIONS 40 IN 4"- 13TH YEAR BEGINS -LONG TERM WIN RATIO 78%

OPTION BUYER’S ADVANTAGE: ANY KIND OF MARKET
IS OK FOR OP40!

*********************************************************************

Already in its 13th
year, Options "40 In 4"("Op40") continues to exceed both its long term
goals:1. A 75% win ratio:3 of 4
trades producing gains.2. An average
rise of +24% peroption, within 4
sessions.We set the second goal by
targeting this sequence for 4 consecutive, representative signals:+40%
... +40% ... +40% ... and -25% ...(+120 - 25 = +95,and+95/4 = +24).How goals have been surpassed is shown below and on the next page,
summarizing all performance periods to date.Each period is normally 25 calendar days but may vary slightly with our
publication schedule.

--- TRADING ---WIN:LOSS-- SIGNAL PERFORMANCE --TOTAL

PERIODSIGNALSRATIOTOT % RISEAVGE % RISE"RPS"

1-10915171205:312+52340%+ 34%1308.5

110119: 2+ 440%+ 40%11.0

111108: 2+ 280%+ 28%7.0

112106: 4+ 280%+ 28%7.0

113108: 2+ 180%+ 18%4.5

114119: 2+ 360%+ 33%9.0

1151610: 6+ 180%+ 11%4.5

11687: 1+ 240%+ 30%6.0

117127: 5+ 240%+ 20%6.0

1181411: 3+ 480%+ 34%12.0

119117: 4+ 160%+ 15%4.0

120138: 5+ 180%+ 14%4.5

1211110: 1+ 500%+ 45%12.5

1221711: 6+ 460%+ 27%11.5

1231311: 2+ 740%+ 56%18.5

1241411: 3+ 520%+ 37%13.0

1251412: 2+ 680%+ 48%17.0

1261410: 4+ 360%+ 26%9.0

127129: 3+ 200%+ 17%5.0

1281511: 4+ 520%+ 34%13.0

1291916: 3+ 420%+ 22%10.5

1301513: 2+ 440%+ 29%11.0

1311411: 3+ 400%+ 29%10.0

1321412: 2+ 580%+ 41%14.5

1331411: 3+ 560%+ 40%14.0

134158: 7+ 120%+8%3.0

1351511: 4+ 420%+ 28%10.5

1361614: 2+ 640%+ 40%16.0

1371310: 3+ 280%+ 22%7.0

138118: 3+ 320%+ 29%8.0

1391512:
3+ 640%+ 43%16.0

140179: 8+ 200%+ 12%5.0

1411612: 4+ 420%+ 26%10.5

1421510: 5+ 320%+ 21%8.0

1431510: 5+ 440%+ 29%11.0

1441312: 1+ 700%+ 54%17.5

1451712: 5+ 580%+ 34%14.5

146129: 3+ 460%+ 38%11.5

1471412: 2+ 540%+ 39%13.5

148139: 4+ 360%+ 28%9.0

149128: 4+ 440%+ 37%11.0

150128: 4+ 260%+ 22%6.5

1511312: 1+ 680%+ 52%17.0

1521311: 2+ 300%+ 23%7.5

1531411: 3+ 500%+ 36%12.5

1541411: 3+ 420%+ 30%10.5

1551311: 2+ 560%+ 43%14.0

156139: 4+ 280%+ 22%7.0

157138: 5+ 300%+ 23%7.5

1581412: 2+ 540%+ 39%13.5

ALL 158 21821705:477+72460%+ 33%1811.5

The 78% win ratio (1705 gains/2182
signals) exceeds the 75% goal. Average +33% rise (72460/2182) exceeds the +24%
goal.So results are not skewed by very
large rises, we limit them to +100%, and in computing RPS (Rated Performance Score)we make +80% the max (RPS = 0.5 for every 20%).The system prevents trades likely to
underperform, limiting some periods to10 trades.Next page:recent record trade by trade.Anniversary
Special!Order Op40 at the 1996 Charter rate andreceive besides:3 months toll free voice,orEmailhotline. Special combo $545. To include “9 to
1 Edge Finder” (see other page) add only $130, total $675.Hotline is your daily price source and learning aid, with complete
price data for the two SP100 options (one call, oneput) whose price action produces the exclusive Trading
Edge.Hotline computes the edge as well!

Anniversary Q & AQ1: In all your record updates you stress
that “Op40” has been the most popular KVS option system, since it started in
1996. What accounts for this? A1:
The main reason has been the accuracy of the plain math that gives you the Trading Edge (“TE”) every day. Scan the
TRDG EDGE column of the record (the 4th column above).If TE=0, there’s no signal to trade. If TE=5
or above (seldom higher than 10), you trade the current option choice (to the
left of TE). If TE is in the 1 to 4 range, additional logic determines whether
to trade or not.Q2: What determines the option choice?A2: See next page.

Q2: What determines the option choice?A2: “TE” the Trading Edge. It does double
duty. The same time it tells you whether the signaled direction favors a call
or a put, it names exactly which call or put. KVS knows from many years
of experience that SP100 (OEX) options, that last closed in the 1.50-3.50
range, and expire in the current month with at least 2 weeks left to expiration,
are the best candidates for 1 to 4 day trades for 40% profit or more.

Q3: Can you go a little further into
computing “TE” ? What data does the formula need? A3: Two options in the price range just
mentioned, a call and a put, are handed over every evening to the “TE” formula,
for a few price comparisons. Only the day’s open, high, low, and closing prices
are used. Percent differences, between certain prices in this “data base” of
only 8 prices, are converted by the formula into values normally in the 0 to 10
range. Values are summed separately for the call and the put. The option with the higher sum has the edge.
In case of a tie: TE = 0 and there’s no trading signal for next day.

Q4:
If I’d rather not compute the TE myself, can I get it already computed, from
the hotline?A4: Yes, you can. The most liked feature of the hotline, your
choice of voice or Email, is that it gives you already determined values and
decisions.

Q5: The Performance columns, on the
signal summary pages, show two values. Do these numbers evaluate the
performance of each signal? Are they like a “report card” for the system?A5: A good name! The left number is the
grade that Op40 gets for handling the signal, profitably or not. We call this
grade “RPS” (Rated Performance Score): it rates Op40 performance with ascore. The right number “CUMUL” cumulates
the individual scores for a full performance period, commonly 4 weeks.

Q6: Can you give an example or two for the
scoring? A6: For every 20% the option rises, RPS =0.5. For a 40% rise, on
up to 59%, RPS = 1. For a 60% rise, on up to 79%, RPS = 1.5. For an 80% or
larger rise, RPS = 2. With RPS values included, the signal tracking format not
only shows the price advances (and occasional declines), but a report
card for Op40 as well.

Q7: Where do you measure the price rises
from?A7: From the average buy price
for the given signal. It is the mid point between the next day’s opening, which
is your first opportunity to act, and the day’s low, the best available price.

Q8: If I recall right from previous Op40
descriptions: you chose the full name “Options 40 In 4” because the system
objective is a 40% or larger gain within 4 sessions?A8: Yes, exactly. Relatively few gains turn
out to be less than 40%, and there’s an occasional loss. Per trade average over
the long run has been +33%, see the summary for 158 periods on a previous page.

Q9: I see a percent size breakout of the
results. Why not show it all in one column?A9: Most system users like to see how the small, medium, and large
returns are distributed, for an easy scan of relative frequency. The “RPS”
numbers are all in a single column: multiply by 40, and that’s the
percent Op40 gets credit for, not to exceed 80%. That’s the practical limit,
because traders seldom try for more, with such quick turnaround, 4 days or
less.We do show rises up to 100%, but RPS =2 is
max.

Q10: The record shows Op40 doing quite well,
and for a long time now. Why use a second system to enhance Op40? A10: The “9 to 1 Edge Finder” (short name “9 to
1”) started in 2000. It uses the same options as Op40 in its signal logic and
buy/sell formulas, but with different emphasis: accept fewer signals, but each
with a 90% probability of profit within 3 sessions. Teamwork has been beneficial for both systems, here’s an excerpt from
previous summaries for the 5 ways it has worked:

There have been 5 ways for
teamwork to enhance results:1. Op40 paused, TE (Trading Edge) was low, but
“9 to 1” traded. 2. Op40 had a signal in one direction, “9 to 1” had one in the
other direction. To assure sufficient volatility for profit in both
directions: “9 to 1” checks how high TE is, and if it’s 7 or above it yields to
Op40 without trading its own signal. 3. “9 to 1” bought twice.4. Op40 loss prevented or offset by“9 to 1”.
5. Both systems chose the same option, suggesting higher $ commitment.

Q11: I misplaced the 1996 charter offer. Am
I still entitled to it to get your lowest rate? A11: We’re celebrating the start of the 39th
year for KVS (Key-Volume Strategies) and 13th year for Op40. You’re
welcome to the 1996 charter offer, restored for 15 days. Review the Op40
introduction, which includes the charter offer, on our web site: www.key-volume.com.

Q12: How do I get started?A12: Each offer includes system
instructions, step by step: choosing your option, buying your option, selling
your option. You also get nightly hotline for 3 months, your choice of voice or
email. Order with credit card for fastest start (Visa, Master Card, American
Express), or mail a check. Specify A, B, C, or if you already have Op40: C or D.

Choose from the special offers
below, by email to kvshotlines@aol.com
or by calling 800-334-0411 x12K. We’ll be prompt! Mail orders: Key-Volume
Strategies Inc, 46 E. Lincoln Ave,
White PlainsNY10604. Thank you for choosing KVS! We’re proud of 39 years
of systems and services.

Offer “A”: Op40 system + 3 months nightly email which we call
“the hotline” (shorter version available by phone) total $545.

Offer “C”:If you already
have the Op40 system: “9 to 1” system, with 3 months hotline for both systems,
$395.

Offer “D”: If you already have both systems: 3 months hotline for
both systems (extension or renewal) $265.

Anniversary Bonus!Add 1 month
to the offer of your choice. To assure this bonus, do order by Nov 30. Thank
you.

Our other timing and trading products are
taught in our releases and special supplements, with hotlines to keep
you current. Here's a preview, you are welcome to the keys to any named
tool, one per 6 subscription months, for only a $70 surcharge per tool.
Your subscription term choices are: 6, 12 or 18 months. With
the 18 month term you're welcome to an extra tool, your choice, as a bonus, without
surcharge. See rates further down.

"One Day Advantage"
Trading Principle "ODA":Recent
innovation, first available in 2002, allows you to trade Op40 signals
with a one day delay, taking advantage of the fact that the best buy price is alreadyknown.

"MRM":Major Risk Measurement Gauge:Byproduct
of Op40, in use since 1998, gives 1 or 2 signals in most months, to
trade specific index puts with a 100% or larger profit potential.Nearly 90% of signals have been profitable.

"5 Minute" Tool:Just 5 minutes into any trading day you can make a quick test on the DJI
to learn:will this be an up
day or a down day?Minimum
intraday gain is typically 70 points when the tool is correct.When the tool is wrong, a second rule tells
you how to make up the loss in a ratio of at least 3 to 1, example:if you lost 100 points, you gain 300 or
more.The combined accuracy of the 1 day
indication and the "make good 3 to 1" rule has been over 90% since
1999.

Two-Way Signals: Frequent signals, in use since 1991, confirm that natural
volatility is present, and traders have the odds in their favor to profit in either
direction or both. Absence of Two-Way signals in 5 or more
consecutive sessions constitutes a major downside alert, for normally a
400 to 600 point DJI fall, with an occasional even larger one of 800 to
1000 points. Since we discovered this major warning feature in 1999,
there have been an average of
5 such signals a year.

"9 to 1" Edge Finder:Discovered in 2000, this tool has the prime role to enhance
returns from any option system.A signal
occurs only when there is a 90% (9 to 1) probability for a quick profit of up
to 60% in 1 or 2 days.Nearly 9 in 10
signals have indeed been accurate.The tool
can also be used as a standalone index option trading system, but signals are
relatively infrequent, sometimes only 6 to 8 in a month.

Big One Day Changes:Since 1998 we have used a set of simple rules for treating every 90
point or larger DJI closing change (up or down) as a signal for a move of about
600 points.Some big up days are buy
signals, others are sell signals.Likewise, some big down days are buy signals, others are sell
signals.The trading logic decides
direction, entry, and exit.

Natural
Volatility Products: NV1 (formulas) or NV2 (full system). We discovered the underlying logic near the end of 2002.
Learn how to measure volatility and profitability by easy math, using only a
day's prices for a given index option. Catch trading signals for options
several times a month for 60% gains within 3 days. Use specific rules for
adjusting your original exit goal when the gain does not come quickly
enough. NV signals have been profitable slightly over 80% of the time.

"SPP": Sell Price Predictor:Before you accept a loss on
any index option which you bought thru any source, consult the Rebound
Profiles of SPP,
introduced in August 2004. The profiles tell you clearly whether
to accept a loss, or if not: how many more days to hold for, and for what
size rebound. The surcharge for SPP is $175, rather than the $70 that
applies to other methods.

Other investment aids, which you learn automatically through
a subscription to the KVS releases include: Key-Dates for
market turns;Magnetic
Bands for support and resistance;and the Key-Volume concept for stock trading.

HOW TO ORDERThe one-time fee for Options "40 In 4" is
$675, but you can save through the Anniversary Special fee of only
$545.You may even be eligible for the
super saver charter rate from 1996, mentioned in the 15 day time limit
offer you've browsed up front.Higher
rates of $495 to $545 include two months hotline by voice ($495) or
email ($545), the choice is yours.The
highest fee of $675 includes "ODA" (described above)
plus 3 months hotline, voice or email.If you wish to renew the hotline later, rates start at $135 for 3
months.Use the hotline as your data
source, learning aid, or shortcut.

KVS subscriptions bring you 14 to 20
features a year on systems, tools and techniques, numbered as
"releases" (plus educational back issues) and four email or
recorded updates (your choice) per week, two on market timing and stocks
and two on the large potential (100%+) option trading outlook. Special
rates for web site browsers are $279 for 6 months, $449 for a full year, or
$579 for 18 months. Bonus and surcharge choices were described
above. If you already have all the listed
tools from an earlier subscription, you're welcome to one of the following
as a bonus with a 1 year or 18 month order: 2008 Stock Trader's Almanac,
hardcover 180+ pages, focusing on seasonal opportunities and dangers, with
daily calendar timing help and a variety of record keeping forms; and/or Extra
Hotline Time, 1 month. Email address for our System Support
staff: kvshotlines@aol.com

Call 800-334-0411 ext. 12-E to order: Use Visa,
MasterCard or American Express. This is a 24 hour number. If you
prefer to mail a check, ask to speak to someone on the KVS staff for the
fastest service mailing address, and for a code to be written on your mailing
envelope to assure your special rate. From outside the USA
call 828-692-3401. If you prefer to order by Email:
info@key-volume.com. Be sure to include your telephone number
with your order. If you have a Fax number, please provide it as
well. Thank you, we appreciate your joining us, we fill all
orders by 2 day priority mail; auxiliary material is sent by Email.

Hello again from your KVS support staff:Welcome to the new world of DJI 13000-14000,
and the DTE 2007 system! You may have been on an early distribution list for this
milestone report in July, with special offers, because of your past orders. If
not, this web site copy will bring you current. This can mean important savings
for you, because some fees are scheduled to double.Thank you very much for choosing the KVS
family of investment products and services!KVS Systems Support

KVS #952 SUMMER 2007:MESSAGE FROM THE
DOW: “I HAVE JUST CHANGED 55 OR

MORE POINTS FROM YESTERDAY.
TAKE THIS AS A CLUE TO PROFIT 50% FROM OPTIONS.”

When
the Dow starts talking to you, perhaps you’ve been working too hard, and you
need a rest. But then again, this could be special reward time if you accept a
challenge. This is our 38th year in the market, and our experience
tells us that there’s always another challenge. Stay alert, recognize what it
is, and do something about it. It’s too soon to rest!

A
system we call simply “DTE” for Daily Trade Email, has been the work
horse for our specific entry/exit logic for trading index options. The SP100
(OEX) index is our preferred vehicle. If it’s not yours yet, we’re confident
that it will be. Because DTE wants to trade almost every day, and we want to
minimize open positions, we have a not-so-fantastic 30% quick profit goal per
signal. We’ve been getting it more than two thirds of the time, for going on 3
years. What about unused potential?

DTE
does have a way to score occasional large gains, even in excess of 100%. But
what if we could score frequent large gains, not
necessarily triple digits, but realistically: how many traders would object to
+50% to +75% gains, let’s say 6 to 10 times a month? What could make that
happen? Something as simple as 55
point or larger moves by the Dow (DJI), in either direction, from one day’s
closing to the next. Continue to use the established DTE quick gain
logic, but when the Dow gives a large gain alert: boost the 30%
target to the 50% to 75% range, even higher at times, with some added logic.

You’ll
be pleased to know that such added logic is no longer tentative: it has been
applied to DTE signals, and Dow signals, since the start of 2007. We designated
the 6 month period through June as the pre-release test period, then extended
it by 2 months through August, to give “Murphy’s Law” more than a fair chance
to make its move. We’ve all had experience with this troublesome “law”: “If something can go wrong, it will.”

What
the new logic has accomplished so far, as you’re about to see, leaves us
confident that “DTE 2007” is not about to present unpleasant surprises.
Therefore the upgraded DTE, with large gain capability, is available now at a discounted early release fee. After August
the fee will rise considerably, so for the “daring” among you the opportunity
is here right now to get a head start, and save a significant amount. Scan the
record, then we’ll tell you more. If it’s past August when you read this: see extra 5th page with track
record addendum, and grace period special into September.

---- DTE 2007 ACHIEVED BY SIGNAL TYPE ----

SIGNAL%OF ALLTOTALAVERAGEWIN

TYPESIGNALS%GAINPER SIGNALRATIO

1N44+ 823%+ 46%83%

5,615+ 432%+ 72%100%

2N12+ 423%+ 85%100%

112+ 373%+ 75%80%

3N10+ 153%+ 38%75%

4N7+ 171%+ 57%100%

ALL100+2375%+ 58%87%

Specific
Option, with Entry & Exit Prices, In a Nightly Email, Directly to YouThe nightly email hotline content, to which
current DTE users are accustomed, will be extended by a few lines starting July
31, to include Large Gain advice. To quantify the new large gain
capability, we gave you a summary above, based on the last 50 times the DJI
changed 55 or more points, close to close, and a DTE 2007 signal resulted.
About 2 in 10 signals permit no action, because other signal components cancel
them, or the buy price is not available. The
table on page 2 expands the summary into trade by trade detail.

Do
you need to learn the signal logic? No, you do not. The nightly email tells
you exactly which option to buy, at what price, and what your sell target is as
a minimum, commonly 50%. Thus, as soon as your email subscription starts, you
can begin trading. Even with the decisions made for you, you’ll probably like
some insight into the system foundation and logic structure:So we’re adding a description of signal
components to the trade by detail on the next page. When the DJI
changes 55 or more in a single day, that is a trading alert, not a
signal yet.One or more of the other signal
components need to confirm the alert. Altogether there are 6 components, each
one a KVS “in house” technical invention, ranging in experience from 38 years
to one year. They have been specially put together for DTE 2007 and stand ready
to serve you. Meet the team:

2. Magnetic Bands: Used for support
and resistance in market timing for 28 years. Recently enhanced with day to day
option trading capability.3. “2
Day Magnet” and “EOP” (Ease of Profit): These formulas have generated
the 30% quick profit signals for DTE since 2005. 4. Natural Volatility:
Upgraded from 2003 to recognize when it’s OK to buy an option at next day’s
opening for a 50 to 60% rise. Signal types ending with N are supported by the
smart second screen we call NV3.

5. “Two-Day
Swing”: Measurement of full DJI 2 day move size, using intraday
extremes, from low to high, and also high to low. Used since KVS started in
1970. 6. Trading Edge “TE”as computed daily by the Op40 system:Whether the direction of the DJI move
(component #1) agrees or disagrees with the “TE” direction determines most
signal types. For traders who prefer to
learn a system in detail, then have a role in decision making,”Op40” is the recommended alternative
to DTE 2007. Works well together with the “9
to 1 Edge Finder”. These two
systems are featured on the last 2 pages today.

Now
see what the team has been capable of, and how to order the DTE
2007 service. Thank you for choosing a KVS product!

SIGNALOPTIONBUYTARGETS AND DAYS TO ACHIEVE
THEM

DATETYPECHOICEPRICEORIGDAYS HIGHDAYSNORM%GAIN

3/
24NMAR650C1.802.7002.8002.75 + 53%

3/
54NAPR660C2.904.30X4.2034.20 + 45%

3/
63NAPR580P1.852.75X2.2542.05 + 11%

3/133NAPR580P2.253.4003.4003.40 + 51%

3/141NAPR655C3.104.60X4.0034.00 + 29%

3/191NAPR600P1.852.75X1.9001.25 – 32%

3/201APR660C2.153.2006.8015.00 +132%

3/211NAPR665C3.004.3014.4014.35 + 45%

3/212NAPR635P2.403.6024.9044.25 + 77%

3/235APR635P2.603.9004.9024.40 + 69%

3/281NAPR625P1.702.5503.1002.83 + 66%

4/
31NAPR665C2.253.4003.5023.45 + 53%

4/112NMAY675C2.503.7017.0025.35 +114%

4/121NMAY675C3.204.8018.5026.65 +108%

4/163NMAY685C2.403.6015.9034.75 + 98%

4/201MAY695C1.852.7523.3023.03 + 64%

4/251NMAY695C3.004.50X2.9522.95 -2%

4/275MAY665P1.902.8503.4013.13 + 64%

5/
21NMAY695C2.503.7014.5024.10 + 64%

5/111NJUN710C2.053.1014.1043.60 + 75%

5/161NJUN710C2.904.3024.4024.35 + 50%

5/225JUN675P1.802.7013.1012.90 + 61%

5/242NJUN710C1.852.7524.2043.48 + 88%

5/301NJUN710C3.004.2014.2014.20 + 40%

5/304NJUN690P1.902.6004.0043.30 + 73%

6/
61JUL650P2.654.0004.2014.10 + 55%

6/
73NJUL630P2.103.10X1.95 21.95 -7%

6/
81NJUL715C3.304.6036.4045.50 + 67%

6/131NJUL715C3.505.2016.4015.80 + 66%

6/151JUL725C2.453.70X2.4022.35 -4%

6/195JUL670P1.502.2504.0013.13 +109%

6/201NJUL670P3.204.8016.6035.70 + 78%

6/212NJUL670P2.754.1006.6025.35 + 94%

6/221NJUL655P2.303.4014.1023.75 + 63%

6/266JUL710C2.003.0003.7013.35 + 67%

6/271NJUL710C2.754.0034.1034.05 + 47%

6/272NJUL655P1.502.2012.3012.25 + 50%

6/295JUL710C2.503.7014.4044.05 + 62%

7/
21NJUL710C2.804.2024.4034.30 + 54%

7/101NAUG640P2.303.40X1.1031.10 – 52%

7/111AUG730C2.103.1006.4014.75 +126%

Notes on column content, more detail when
you subscribe:SIGNAL TYPE is
determined by which components played a role. BUY PRICE is specified in daily
email. ORIGINAL TARGET (sell) is specified in daily email. X indicates the
target was not reached and needed to be lowered in follow-on email. DAY 0 means
the day of purchase, 1 is a day later, etc. NORM is the average gain, halfway
between minimum (original) and high, you get guidelines up front, then comments
in daily email.

How
to order the Early Release at Lowest Price:Cost is $409 including the current DTE 2006
system, with rules for 30% gains and new guidelines for larger gains,
also including 3 months daily email, with quick gain entry & exit, as
well as largegain entry & exit. On Aug 31, 2007 the fee will
approximately double. Order with credit card by email to kvshotlines@aol.com or by calling toll
free: 800-334-0411 x12D. All system user questions are answered same day or
next. Renewal fees are $219 for 3 months or $389 for 6. Mail orders: call or
send email to say this is your preference, and you’ll get a code and address.

KVS #952 page 3

*********************************************************************

"OPTIONS 40 IN 4"- 12TH YEAR, 2007 -LONG TERM WIN RATIO 78%

OPTION BUYER’S ADVANTAGE: ANY KIND OF MARKET
IS OK FOR OP40!

*********************************************************************

Already in its 12th
year, Options "40 In 4"("Op40") continues to exceed both its long term
goals:1. A 75% win ratio:3 of 4
trades producing gains.2. An average
rise of +24% peroption, within 4
sessions.We set the second goal by
targeting this sequence for 4 consecutive, representative signals:+40%
... +40% ... +40% ... and -25% ...(+120 - 25 = +95,and+95/4 = +24).How goals have been surpassed is shown below and on the next page,
summarizing all performance periods to date.Each period is normally 25 calendar days but may vary slightly with our
publication schedule. Update coming late September.

--- TRADING ---WIN:LOSS-- SIGNAL PERFORMANCE --TOTAL

PERIODSIGNALSRATIOTOT % RISEAVGE % RISE"RPS"

1-10414581159:299+50480%+ 34%1262.0

105117: 4+ 140%+ 13%3.5

1061412: 2+ 740%+ 53%18.5

1071311: 2+ 300%+ 23%7.5

10896: 3+ 160%+ 18%4.0

1091210: 2+ 520%+ 43%13.0

110119: 2+ 440%+ 40%11.0

111108: 2+ 280%+ 28%7.0

112106: 4+ 280%+ 28%7.0

113108: 2+ 180%+ 18%4.5

114119: 2+ 360%+ 33%9.0

1151610: 6+ 180%+ 11%4.5

11687: 1+ 240%+ 30%6.0

117127: 5+ 240%+ 20%6.0

1181411: 3+ 480%+ 34%12.0

119117: 4+ 160%+ 15%4.0

120138: 5+ 180%+ 14%4.5

1211110: 1+ 500%+ 45%12.5

1221711: 6+ 460%+ 27%11.5

1231311: 2+ 740%+ 56%18.5

1241411: 3+ 520%+ 37%13.0

1251412: 2+ 680%+ 48%17.0

1261410: 4+ 360%+ 26%9.0

127129: 3+ 200%+ 17%5.0

1281511: 4+ 520%+ 34%13.0

1291916: 3+ 420%+ 22%10.5

1301513: 2+ 440%+ 29%11.0

1311411: 3+ 400%+ 29%10.0

1321412: 2+ 580%+ 41%14.5

1331411: 3+ 560%+ 40%14.0

134158: 7+ 120%+8%3.0

1351511: 4+ 420%+ 28%10.5

1361614: 2+ 640%+ 40%16.0

1371310: 3+ 280%+ 22%7.0

138118: 3+ 320%+ 29%8.0

1391512: 3+ 640%+ 43%16.0

140179: 8+ 200%+ 12%5.0

1411612: 4+ 420%+ 26%10.5

1421510: 5+ 320%+ 21%8.0

1431510: 5+ 440%+ 29%11.0

1441312: 1+ 700%+ 54%17.5

1451712: 5+ 580%+ 34%14.5

146129: 3+ 460%+ 38%11.5

1471412:
2+ 540%+ 39%13.5

148139: 4+ 360%+ 28%9.0

149128: 4+ 440%+ 37%11.0

150128: 4+ 260%+ 22%6.5

1511312: 1+ 680%+ 52%17.0

1521311: 2+ 300%+ 23%7.5

1531411: 3+ 500%+ 36%12.5

ALL 153 21151654:461+70360%+ 33%1759.0

The 78% win ratio (1654 gains/2115
signals) exceeds the 75% goal. Average +33% rise (70360/2115) exceeds the +24%
goal.So results are not skewed by very
large rises, we limit them to +100%, and in computing RPS (Rated Performance Score)we make +80% the max (RPS = 0.5 for every 20%).The system prevents trades likely to
underperform, limiting some periods to10 trades.Next page:recent record trade by trade.Milestone
Special!Order Op40 at the 1996 Charter rate andreceive besides:3 months toll free voice,orEmailhotline.Special combo $545. To include “9 to
1 Edge Finder” (see other page) add only $130, total $675.Hotline is your daily price source and learning aid, with complete
price data for the two SP100 options (one call, oneput) whose price action produces the exclusive Trading
Edge.Hotline computes the edge as well!

Teamwork: Op40 with “9 to 1
Edge Finder”Options“40 In 4”, better known by its nick name
“Op40”, has been our most popular option
system since its first year. We bring you a monthly update of both the long
term (previous page) and short term records (see two latestperiods above).Major appeal of Op40 to option traders is that you learn the system, then maintain
a measure of control:you have elbow
room to make your own decisions whether to trade or not – depending on size of
“TE” (Trading Edge) – and whether to settle for a smaller profit quicker, or
try for a“home run”.Note in the performance periods above:no fewer than 11 opportunities for gains of
+55% or better.Different size profits
are in different columns, for an easy scan of the distribution of smaller and
larger gains. What the Op40 logic has not favored is buying at the market. Buy orders 5 to 30
cents under the previous close work the best.

A companion system from 2000,
the “9 to 1 Edge Finder”, does buy at the next opening after a signal.
What if the price gaps up, and leaves small room for profit? The “9 to 1” logic
sets a limit price for a second buy a certain % under the first. If an
up gap whipsaws back down, making it look like the buy was too high, buying again nearly always turns a paper
loss into one or two actual gains. Every signal flagged by + in the signal column
invoked teamwork between the two systems. The
foundation for both is simple math, comparing certain option prices to others,
and using the percent differences for trading decisions.

There are 5 ways for teamwork
to enhance results:review below, then spot them
in the record. For an easy scan of signal performance we have used the “RPS”
(Rated Performance Score) method since the 1996 charter offer, which remains on
our website www.key-volume.com. The 5 ways, with examples:

2.Op40 had a signal in one
direction, “9 to 1” had one in the other direction: May 7, 9, 10; Jun 6, 15. To
assure that there’s enough volatility for profit in both directions: “9 to 1”
checks how high the TE is, and if it’s 7 or above it yields to Op40 without
trading its own signal.

Option Buyer’s Advantage: Daily Market Timing is Built In!It’s a good idea to time your larger
option purchases near our projected market bottoms and tops, but for daily
action simply trade the signals of “Op40” and “9 to 1”.

Choose from the special offers
below, by email to kvshotlines@aol.com
or by calling 800-334-0411 x12K. We’ll be prompt! Mail orders: Key-Volume
Strategies Inc, 46 E. Lincoln Ave,
White PlainsNY10604. Thank you for choosing KVS! We’re proud of 38 years
of systems and services.

Offer “A”: Op40 system + 3 months nightly email which we call
“the hotline” (shorter version available by phone) total $545.

Offer “C”:If you already
have the Op40 system: “9 to 1” system, with 3 months hotline for both systems,
$395.

Offer “D”: If you already have both systems: 3 months hotline for
both systems (extension or renewal) $265.

KVS #952 p. 5

DTE 2007
Addendum, with September Grace PeriodFor those who’ve been curious about the
durability of DTE 2007 performance, given the recent eruption of market
whipsaws: this expansion of the record will speak for itself. The influence of
the whipsaws is best seen in the first of the two DAYS columns, under TARGETS:
note the more frequent occurrence of“X”
compared to the previous table (3/2-7/11).“X” marks those trading signals that did not reach their original
exit targets. The whipsawing invoked protective rules which lowered the
targets.

Go to the ends of the “X” rows, and you’ll
find very modest gains, or losses. Our exit logic is strong on the principle
that profit protection is a better discipline than waiting for a couple of
extra days for losses to whipsaw back into gains. We’d do new studies if the
win ratio dipped to 67%, though two of three trades winning would be acceptable
to most. But we remain comfortably higher: the 8 losses in the 7/12-8/29 signal
period take a back seat to 24 wins. The win ratio is 75%.

We do not blame traders who missed the 8/31
deadline for the Early Release Savings.A new column DJI, second from the
left, shows the Daily DJI Change that triggered each signal. The
magnitudes have been “awesome”. But if you have a system that can master
personality changes in the market, it’s not a good idea to wait on the sideline
for the return to “normal”. This may be it! Scan the record, then we’ll update
the special offer on an earlier page of this release. The Signal Type
statistics, omitted this time to make room for the DJI, are provided to
all new DTE 2007 system users.

SIGNALOPTIONBUYTARGETS AND DAYS TO ACHIEVE THEM

DATEDJICHOICEPRICEORIGDAYS HIGHDAYSNORM%GAIN

7/12+284AUG735C (2.95) --------SEE: 7/16

7/16+ 44AUG675P2.253.301 3.6013.45
+ 53%

7/19+ 82AUG740C1.652.45X1.8011.80 + 9%

7/20-149AUG670P2.553.8014.5024.15 + 63%

7/23+ 92AUG735C2.003.00X1.1511.15
- 42%

7/24-226AUG670P3.104.7019.5017.10
+129%

7/24-226AUG725C2.253.0003.0002.97 + 33%

7/25+ 68AUG670P4.707.0009.5008.25
+ 75%

7/26-312AUG635P2.053.4013.8013.60 + 76%

7/27-208AUG635P3.405.10X2.6012.60
- 24%

7/27-208AUG710C1.752.3512.9012.63 + 50%

7/30+ 93AUG635P1.402.1003.8002.95 +111%

7/31-146AUG625P2.102.80X1.4021.40
- 33%

7/31-146AUG700C2.253.0004.5003.75 + 67%

8/
1+150AUG705C1.952.60X2.1502.15 +8%

8/
1+150AUG625P1.451.95X1.4011.40 - 3%

8/
2+101AUG650P2.353.5007.2035.35 +127%

8/
3-281AUG625P1.802.4002.5002.45 + 36%

8/
3-281AUG695C1.552.0507.3014.67
+201%

8/
6+287SEP730C1.552.0504.4013.22 +108%

8/
6+287SEP600P2.603.6025.0024.30 + 65%

8/
8+154SEP740C1.502.0002.1002.05 + 37%

8/
8+154SEP600P3.004.0006.9015.45 + 82%

8/
9-387SEP560P2.253.3036.3044.80 +111%

8/13- 3SEP725C1.351.8032.3032.05
+ 52%

8/14-208SEP560P2.203.3006.3014.80
+118%

8/15-167SEP560P4.305.0006.3005.65
+ 31%

8/17+233 SEP560P1.952.90X.603.60 -
69%

8/22+145SEP715C2.153.20X2.0512.05
-5%

8/24+143SEP715C2.353.10X1.4021.40
- 40%

8/27- 57SEP630P3.404.6006.0005.30
+ 56%

8/28-280SEP600P1.902.50X1.4011.40
- 26%

8/29+247SEP710C2.202.9504.4013.67
+ 67%

Q&AQ1: Ithought the DJI has to change at least 55 points to trigger a signal. I
see a +44 (7/16) and -3 (8/13) in the record, please comment.A1: There are infrequent “3 day pattern”
signals,such as “Momentum Dry-up”, which start with a big one day change (as 7/12),
and are followed by two changes less than 55.Q2: Is there a maximum buy price,
to protect against paying too much on an opening up-gap?A2: Yes, butlarge “Magnetic
Band Spans” allow exceptions.Q3: Some big DJI changes appear to generate
signals for a call and put, both. Comment?A3: Correct, our “Natural
Volatility” readings suggest trading both directions, on occasion, and
produce two profits rather than one, or a profit more than offsetting a loss.

How
to order the Early Release at Lowest Price: Extended DeadlineCost is $409, includes: 1. DTE 2006 system, forerunner
ofDTE 2007, with rules for 30% gains,
and a “relaxed exit” tactic for larger ones.2. DTE 2007 with focus on gains of +50% or more. Rules &
guidelines.3. Nightly advice from
both:3 months email hotline. Market
forecasts included. Questions answered promptly. -- On Sep 25: the fee will rise to $690. Order with credit card
by email to kvshotlines@aol.com, copy kvsnick@aol.com. Or place your order toll
free: 800-334-0411 x12D. Renewals: $219
for 3 months or $389 for 6. Mail orders: call us, or send email to say this is
your preference, and you’ll get a code and address. Thanks for choosing KVS, our 38th year!

KEY-VOLUME STRATEGIES INC.RELEASE
#950 MAR/APR2007VOL.
38NO. 2

Dear Current or Prospective Subscriber or System User:
Featured this time is the teamwork of “OP40”, and the “9 to 1 Edge
Finder”. Read carefully and you’ll have no concern about
“bad times” ahead!We can now save first
class mail time, and give Email users an edge to act on special offers with a
time limit (pages 2 and 3). Thank you for choosing KVS products!

KVS #950 MAR/APR2007:“BEN, I LIKE YOUR
SYSTEMS, BUT…

WHY DO YOU LEAVE SO MUCH PROFIT POTENTIAL UNUSED?”

The above question was addressed to Ben Sterling, a KVS
systems developer who authored “Op40” and the “9 to 1 Edge Finder”.What triggered the question was a rash
of very large runups by OEX (SP 100) put options during the big February market
fall. To put our result tracking in perspective, and give you a head start on
future market falls, we have two tables and a Q&A for you on the last page,
we suggest that you go there first:

Just above the “Bad
Times” for the Market paragraph note the substantial difference for
period #149 between the performance score (RPS) for Op40 by itself: RPS = 11,
and the enhanced score using Op40 and “9
to 1” teamwork, RPS = 22. You’ll probably ask if you’re reading this
correctly: double the percent
achieved, using the two systems together, in the same amount of time?Yes, you are reading correctly. The profit
potential of the “9 to 1 Edge Finder” had a “back seat” in previous
presentations. This was mainly because of relatively few signals in several
months. But there have been enough busy months to justify today’s feature, and
begin realizing more of the profit potential than we had previously settled
for.

The signal tracking format below is very similar to that on
the last page, but the content includes “9 to 1” results in extra rows that
follow Op40 results. If no “9 to 1” signal, then the Op40 signal is not
repeated from the last page.In the
second column: “9 to 1 Decision”, if CALL or PUT is underlined,
then both systems had a trading signal for the same option. You’ll find 8 such
cases for the two performance periods #148 and #149, separated by a row of
hyphens.. When the two systems support one another this way, a larger dollar
commitment (1.5 to 2 times) is justified. What
about the other 10 signals? Pass them by? You will not want to! Scan the
table, see if you get an idea or two. Then go on to the facts and suggestions
that follow.

OP40 “9to1”OPTIONOP40% RISE AT LEASTRISEMIN%LOSS-- RPS --AVGROSE

SIGNALDECNCHOICETE
+20+40+60+80<20%-1 -40OP409to1BUY TO

JAN12+FEB675C8..........-16..- 0.52.932.45

12+ CALL“”8...... ....-14..-0.53.603.10

16+PAUSE-C1..............0.0

16+ CALLFEB675C1+24x2 ............+1.02.503.10

29+FEB650P5.......... -27..-
0.51.24.50

29+ CALLFEB670C[5]...... +100......+2.01.804.30

30+PAUSE-C4..............0.0

30+ CALLFEB670C4...... +100......+2.01.904.30

31+FEB670C8+29............+
0.53.254.20

31+ CALL“”8+20............+0.53.504.20

FEB
6+PAUSE-P4..............0.0

6+ CALLMAR685C[4]..........–2x2 ..–0.51.381.35

7+MAR650P3....+65........+
1.52.654.40

7+PUT“”3....+63........+1.52.704.40

*** PERIOD #148 TOTALS, FOR DAYS WITH DUAL
SYSTEM ACTIVITY …… + 1.0
+6.0

FEB
8+MAR650P3...... + 80......+
2.02.424.40

8+ CALLMAR680C[3]..+45x2
..........+2.01.982.90

9+MAR640P8+24............+
0.52.102.60

9+PUT“”8............–40x2-2.01.861.10

12+MAR640P7............-40-
1.01.781.10

12+PUT“”7............–40x2-2.01.801.00

13+MAR675C4.... [+65]........0.0[3.10] 5.10

13+ CALL“”4..+55..........+1.03.205.00

14+MAR680C7............-50-
1.01.90.95

14+PUTMAR650P[7]........+ 9....+1.01.751.90

15+PAUSE0..............0.0

15+PUTMAR650P[4]..+40x2 ..........+2.01.442.05

16+PAUSE-C1..............0.0

16+ CALLMAR680C1+37x2 ............+1.51.462.00

20+MAR680C2..........-27..–
0.51.31.95

20+PUTMAR660P[2]..+45x2 ..........+2.02.884.30

21+PAUSE-P1..............0.0

21+PUTMAR660P1....+70........+1.52.504.30

22+MAR660P8...... +100......+ 2.003.10 26.00

22+PUT“”8.... .. +100......+2.003.20 26.00

26+MAR655P8...... +100......+ 2.04.45 22.50

26+PUT“”8...... +100......+2.004.50 22.50

*** PERIOD #149 TOTALS, FOR DAYS WITH DUAL
SYSTEM ACTIVITY …… + 4.0
+11.0

In the Option Choice column of the joint record on page 1,
PAUSE-C indicates that C = CALL had a low Trading Edge, which Op40 rules
suggested not to trade. PAUSE-P was a similar restriction for a P = PUT signal.
But “9 to 1” logic did have a tradable
signal, why not assume that Op40 is being too cautious, and about to miss an
opportunity?The evidence supports
“9 to 1” trades in such cases. Note in the next row after each occurrence of
PAUSE the favorable outcomes, in the “RPS9to1” column. Among the 6 signals (1/16,
1/30,2/6, 2/15, 2/16, 2/21) only one
resulted in a loss (2/6), so 5 of 6 cases, for an 83% win ratio, produced
gains. Total RPS (Rated Performance Score) added to the Op40 record was +7.5.
With each RPS = +0.5 representing a price rise of 20%, RPS = +7.5 meant an addition of +300% to enhance Op40

.

* 2. Op40 Trades One Direction, “9 to 1” trades the OppositeThese bi-directional
opportunities are infrequent but potent. In the Op40 TE column look for TE values inside
[] (brackets). Unless Op40 had a
concurrent pause (as on 2/6 and 2/15), it was appropriate to trade both
directions (1/29, 2/8, 2/14, 2/20). Sum the “RPS 9to1” column for these signals, and you get total RPS = +7.00. That’s another
+280% added, to enhance Op40 (RPS = 1.0 represents +40%).

* 3. Bargain Buying: Second Buy at Lower Price on Same SignalThe “9 to 1” logic allows for a second buy on
the same signal, if a price drop qualifies for a Bargain Buy. This can happen the same day or 1 day later. In
tracking the signals when it did happen, we appended x2 to the % rise (or fall) to indicate that the result needs to be
counted twice, because the Avg Buy
column reflects the average buy price for two trades. Examples: the 1/16 “9 to
1” signal achieved +24%x2 = +48%, therefore RPS = +1, and the 2/8 signal
achieved +45%x2 = +90%, therefore RPS = +2.0. Each RPS point reflects +40%.

* 4. Op40 loss becomes Breakeven or Overall GainThere’s only one example available, with few
Op40 losses to make good. Look at the 2/14 signals: Op40 took a 50% loss on a
call, but “9 to 1” more than offset it with a put. While a 9% gain is hardly one
to celebrate, when combined with the prevention of a 50% loss it is
significant. We show both the loss and gain to permit this illustration, but in
practice: when TE>6 and there are opposing signals by Op40 and “9 to 1”, a
second test is made to decide which system to trade, or whether to trade both.
In this case, trading only “9 to 1” was correct.

You Can Do Well with this Teamwork, KVS provides Complete
InstructionsThe foundation
for both Op40 and the “9 to 1 Edge Finder” is simple math, comparing certain
option prices to others, and using the percent differences for such decisions
as: 1. Is the Trading Edge (TE) the right
size for a trade, sometimes two trades?2. Does the call or the put have the edge? 3. At what price should you
buy again, in relation to the original buy?Your “data base” of information will include a mere 8 prices: the day’s
open, high, low and close for a specific call, and the same for a specific put.
Op40 chooses for you, daily. To minimize your work, choose a package that comes
with nightly
email hotline, including TE computation; Quick Exit alert if timely for
the next day; Contrarian Tactics; bargain buying; and time limit.

All Offers Include: “Additional Pointers for Using Op40 and9 to 1Together”.By email
or mail, your choice.

Offer “A”: Op40 system + 3 months nightly email which we call
“the hotline” (shorter version available by phone) total $545.

Offer “C”:If you
already have the Op40 system: “9 to 1” system, with 3 months hotline for both
systems, $395.

Offer “D”: If you already have both systems: 3 months hotline
for both systems (extension or renewal) $265.

Q8 (Q&A
expanded from last page): How to Order?.If you misplaced your Op40 charter offer,
restored briefly from 1996, it’s
onour website www.key-volume.com or call for a Fax:877-350-3796.Order toll free:800-334-0411 x12K or send Email
to:kvshotlines@aol.com.Should
you prefer to mail in your order, make your check to Key-Volume Strategies Inc.
and address to same at:46 E LincolnAve, White Plains NY 10604. Please print in
lower left corner: Attn. Scott, and also print the special offer code that we
give you by email or phone when you let us know that you wish to order. Fastest service: choose offer A, B, C
or D and call the 800 number above, and use a credit card. Thank you for choosing KVS
products, as we continue our 38th year!

Q9: Why do your
tables sometimes show +100%, other times only +80%, but you take credit for
only +80% (RPS=2) in either case?A9: We
report as much as was available on every signal, sometimes much more than even
+100% (compare AVG BUY to ROSE TO), but we cap performance at RPS=2, which
equates to +80%. Most traders don’t try for more, in a short 1 to 4 day period.
We do show +100% to indicate: that much or more was available. For an option to
double is a popular goal for traders, so our tables show how often a doubler
was available.

Q10: Is a limit
order necessary for buying, or can I just buy the next opening after a signal?A10:Op40 suggests buy orders below the previous close. It gives you
statistics from past performance to help you decide how much under the close to
buy, the average has been in the 25 to 35 cents range. The “9 to 1 Edge Finder”
buys the next opening, but may buy a second time, the same day or next, if a
bargain buy price is reached, quantified in the rules.

Q11: Which of
your email hotline predicts tops and bottoms for the market (DJI)?A11: The same hotline that announces and
tracks the “9 o 1” signals. It is called the KVS Hotline and it not only
predicts, it teaches you timing tools (some at a modest extra charge) for
independent use.

Q12: How soon
after my order can I expect the materials, and the start of the hotline(s)?A12: We fill orders within 2 days, priority
mail or email. See Q8.

KVS #950page 3

*******************************************************************

"OPTIONS 40 IN 4"- 12TH YEAR, 2007 -LONG TERM WIN RATIO 78%

“BAD TIMES” FOR THE MARKET? JUST FINE FOR
OP40. TIMELY Q&A!

*******************************************************************

Already in its 12th
year, Options "40 In 4"("Op40") continues to exceed both its long term
goals:1. A 75% win ratio:3 of 4
trades producing gains.2. An average
rise of +24% peroption, within 4
sessions.We set the second goal by
targeting this sequence for 4 consecutive, representative signals:+40%
... +40% ... +40% ... and -25% ...(+120 - 25 = +95,and+95/4 = +24).How goals have been surpassed is shown below and on the next page,
summarizing all performance periods to date.Each period is normally 25 calendar days but may vary slightly with our
publication schedule.

--- TRADING ---WIN:LOSS-- SIGNAL PERFORMANCE --TOTAL

PERIODSIGNALSRATIOTOT % RISEAVGE % RISE"RPS"

1-10014071120:287+49260%+ 35%1231.5

1011410: 4+ 180%+ 13%4.5

1021110: 1+ 420%+ 38%10.5

103139: 4+ 320%+ 25%8.0

1041310: 3+ 300%+ 23%7.5

105117: 4+ 140%+ 13%3.5

1061412: 2+ 740%+ 53%18.5

1071311: 2+ 300%+ 23%7.5

10896: 3+ 160%+ 18%4.0

1091210: 2+ 520%+ 43%13.0

110119: 2+ 440%+ 40%11.0

111108: 2+ 280%+ 28%7.0

112106: 4+ 280%+ 28%7.0

113108: 2+ 180%+ 18%4.5

114119:
2+ 360%+ 33%9.0

1151610: 6+ 180%+ 11%4.5

11687: 1+ 240%+ 30%6.0

117127: 5+ 240%+ 20%6.0

1181411: 3+ 480%+ 34%12.0

119117: 4+ 160%+ 15%4.0

120138: 5+ 180%+ 14%4.5

1211110: 1+ 500%+ 45%12.5

1221711: 6+ 460%+ 27%11.5

1231311: 2+ 740%+ 56%18.5

1241411: 3+ 520%+ 37%13.0

1251412: 2+ 680%+ 48%17.0

1261410: 4+ 360%+ 26%9.0

127129: 3+ 200%+ 17%5.0

1281511: 4+ 520%+ 34%13.0

1291916: 3+ 420%+ 22%10.5

1301513: 2+ 440%+ 29%11.0

1311411: 3+ 400%+ 29%10.0

1321412: 2+ 580%+ 41%14.5

1331411: 3+ 560%+ 40%14.0

134158: 7+ 120%+8%3.0

1351511: 4+ 420%+ 28%10.5

1361614: 2+ 640%+ 40%16.0

1371310: 3+ 280%+ 22%7.0

138118: 3+ 320%+ 29%8.0

1391512: 3+ 640%+ 43%16.0

140179: 8+ 200%+ 12%5.0

1411612: 4+ 420%+ 26%10.5

1421510: 5+ 320%+ 21%8.0

1431510: 5+ 440%+ 29%11.0

1441312: 1+ 700%+ 54%17.5

1451712: 5+ 580%+ 34%14.5

146129: 3+ 460%+ 38%11.5

1471412: 2+ 540%+ 39%13.5

148139: 4+ 360%+ 28%9.0

149128: 4+ 440%+ 37%11.0

ALL 149 20631612:451+68620%+ 33%1715.5

The 78% win ratio (1612
gains/2063 signals) exceeds the 75% goal. Average +33% rise (68620/2063) exceeds
the +24% goal.So results are not skewed
by very large rises, we limit them to +100%, and in computing RPS (Rated Performance Score)we make +80% the max (RPS = 0.5 for every
20%).The system prevents trades
likely to underperform, limiting some periods to10 trades.Next page:recent record trade by trade.Anniversary Special!Order Op40 at the 1996 Charter rate
andreceive besides:3
months toll free voice,orEmailhotline.Special combo $545. To include “9 to
1 Edge Finder” (see other page) add only $130, total $675.Hotline is your daily price source and learning aid, with complete
price data for the two SP100 options (one call, oneput) whose price action produces the exclusive Trading
Edge.Hotline computes the edge as well!

“Bad Times” for the Market? Just Fine for Op40!
Timely Q&A. Options“40 In 4”, better known by its nick name
“Op40”, has been our most popular option
system since its first year. We bring you a monthly update of both the long
term (previous page) and short term records (see latest completed periods
above).Major appeal of Op40 to option traders is that you learn
the system, then maintain a measure of control:you have elbow room to make your own
decisions whether to trade or not – depending on size of “TE” (Trading Edge) –
and whether to settle for a smaller profit quicker, or try for a“home run”.Note in the performance periods above:no fewer than 14 opportunities for gains of +55% or better.Different size profits are in different
columns, for an easy scan of the distribution of smaller and larger gains.
Period #149 included a market drop of nearly 900 points! But Op40 did well.
Let’s take a close look:

Q1: How does Op40 avoid lower
performance, when the market is weak or negative?A1: Op40 signal rules have been thoroughly tested in
actual use for more than 11 years. The signal logic has been responsive,
beyond our pre-launch expectations of 1996, to changes in market
direction, gradual or sudden. This is reflected in the mix of trading
signals, for call options which benefit from market advances, and put
options which benefit from market declines.

Q2: What has been the mix,
since the market topped out near 12800 in February?A2: Period #149, the second of two performance
periods reported above, includes Op40 signals from Feb 8, just before the
decline, thru Mar 2, by when the market started to recover. Of the 12 Op40
signals traded in this period: 10 were for put options, while only 2 were
for call options.

Q3: Overall, then, this had
to have been a very good performance month for Op40, correct?A3: Yes. The RPS total was 11.0. Each “RPS”
point equates to a 40% option rise, thus RPS = 11.0 means a total of +440%. To
view this from a long term perspective, scan the last column of the long
term table on the previous page, with the heading “Total RPS”. For the last 16
periods, each being about 4 weeks, since #134 (see numbering in first column),
performance totals ranged from a low 3.0 to a high 17.5. The latest total is
near the high end, though market historians have been busy with negative
statistics.

Q4: What about extra large
gains on individual signals? On the Feb fall, I noticed several put option
runs, greater than 400%, one even greater than 1000%, in just a couple of days.A4: Because most traders don’t try for more
than an 80 to 100% gain on a single signal, we cap Op40 performance at RPS =
2.0. A reliable way to exceed this cap in personal returns, and outperform Op40,
is this: set a mental profit goal 40 to 50%, don’t actually place a sell
order. Check daily whether the mental goal has been achieved. If yes: sell at
the next opening, or at leastequal to
the mental goal in case of a sudden pullback.

Q5: Would you show of couple of examples for
how this tactic can produce larger gains?A5:
Fine, we’ll use a 50% profit goal and measure from the next opening after an
Op40 signal (though you can almost always buy lower than the opening). Feb
22 signal: Op40 choice was Mar660 put OEYOL. Opened 2/23 at 3.20. Mental
goal: 3.20 + 50% = 4.80. Reached 2 days later. Next opening (2/28)was 19.40. Rise from 3.20 was +506%. Feb
23 signal: Op40 choice Mar655 put OEYOK opened next day at 2.05. Mental
goal: 2.05 + 50% = 3.10. Reached 1 day later. Next opening (2/28) was 15.90.
From 2.05: +675%.

Q6: Going back to A4, would
you show a “sudden pullback” example, with the mental goal becoming the actual
goal?A6: Feb 27 signal: Op40 choice Mar600
put OEYOT opened next day at 1.55. Mental goal: 1.55 + 50% = 2.35. Reached on a
rise to 2.75 a day later. A sudden pullback the same day (3/1) lowered the
price to 1.00. The 2.35 goalbecame the
actual goal, with a limit order placed to sell. Reached at 3/5 opening of 2.50
for gain of +61%.

Q7: How does the “9 to 1 Edge
Finder” add to profits of Op40 signals?A7: This is
the main topic of the first 2 pages, go back to the front page.

KEY-VOLUME STRATEGIES INC.RELEASE
#948 NOV/DEC 2006VOL.
37NO. 9

Dear Current or Prospective Subscriber or System
User:Featured systems in this release
are again MAGOP, on the first two pages, and Options “40 In 4” on the last
two.Special offers are on page 4. We’re
pleased that we can now save first class mailing time, and give Email users an
edge to act on special offers with a time limit. Thank you for choosing KVS
products.

KVS #948 NOV/DEC 2006:“MAGNETIC BANDS” ADD TO THEIR

OPTION TRADING PROFIT RECORD, WITH
ADVANCED ENTRY/EXIT LOGIC

A KVS invention from more than a quarter century ago, “Magnetic
Bands”, has revealed an unplanned ability to generate quick turnaround profits in S&P index options.
As we’ve been reminding trading enthusiasts since Release #945:If you seek to improve your investment
results consistently, sometimes “when you
least expect it you’re selected” for a profitable surprise.It was during a routine update of market turn
statistics, a little over a year ago, that we made the discovery. We did not expect an invention to result,
but one did!We’ve been grateful,
and have shared the basics with a growing number of investors who read a KVS
release in the #945-948 range, and ordered at modest prices that may well look
too low for a complete system. But we’re not aiming at “home runs” with our
fees, we’d rather broaden our user base with new users from all income levels.

See the rest of this page, and the next page, for your
introduction, or re-introduction, with expanded record. The one time fee for
the system is now $290, just $80 more than earlier. An additional $199 brings
you a daily email with specific SP100 options, and specific entry & exit
prices, saving you substantial self study. What is the key to continuing
profits? It’s what we call the Magnetic
Bands Options Connection: MAGOP
for short. MAGOP combines the long
term success of Dow (DJI) support & resistance bands, now in their 28th
year, with short term profit opportunities from DJI rallies and pullbacks,
typically160 or more points. Many,
perhaps most of you have probably not been aware that such moves occur almost every two days. Watching only DJI closings
conceals the all-important intraday moves that reward MAGOP signals several times a week. Scan
the latest segment of the record below, then read on for how you can start
sharing the benefits.

Observe the Trade Map column in the
center: for each signal (always received after the close) you see a code. This is
called the Action Pointer (AP). The daily email
advice includes the specific option to trade, with its symbol and closing
price, and also the AP code which points to a specific row in a decision
table called the Trade Map. Users receive the
system instructions, along with the Trade Map, a day or two after ordering MAGOP. Your daily routine, fully usable without studying the rules, will be to
find the AP row, read across, and do simple math (subtraction and addition) to
determine prices for placing orders.

Daily Signal Tracking: Keys to MAGOP Record (p.1)The table shows you the origin and outcome of
MAGOP signals for the latest two
month period, as of the publication of Rel #948 in the latter part of
November.For readers who just want the Trade
Map and daily email advice, there is more detail than needed. Later you
may wish to learn the rules for independent use, then all content will become
important. For now, view the content as a display of the thoroughness of the
system logic on which the daily advice is founded. Which columns would be best
to get familiar with now? Follow along in the record:

DJI Swings: Signals were received at the DJI levels
shown, on the dates shown, after the close. What generated the signals? The
prime trigger was move size.
The Signal Swing column, with the
larger numbers, measures maximum intraday moves, usually for 2 days,
exceptionally for 3. The Verify Swing
column measures to the DJI closing only, for signal verification. The
relationship between the two sizes, the Swing Ratio, is a key determinant of whether to trade the signal or omit it.
Omitted trades are excluded from the record. You’re probably curious about move
sizes preceded by the letter D: it stands for divergent behavior, such as an intraday up move with a down
closing, or down move with an up closing. This is important for the system
logic, but not important to learn by email advice followers. We know, it’s
difficult to see things flagged and be told it’s not important to know why. But
you can be a MAGOP “driver” without
being a MAGOP “mechanic”. First
things first.

Option Choices and Action PricesStarting with the Option Choice column at page center, you see exactly what the Trade
Map told users to buy, at prices known as the Norm and Bargain. For
some signal patterns such as Q+ or M (shown in TradeMap column) Norm Buy is a buy at the next opening.
For other patterns such as Q or Q#, Norm is a certain % under the Signal Close. The Bargain Buy price, set for a second, lower buy on the same signal,
is not usually reached. When not reached it is shown in [brackets]. Whether it
executes or not, the bargain buy price is important for the Exit price logic of the system. Trade
results: if % Gain is underlined
it is to be counted twice when aggregating results, because it’s the
average gain from two buys on the same signal. The High column shows the best available outcome for a signal, on
system exit day or a day later. MAGOP
does not take credit for these high gains (or smaller losses). They’re
shown for comparison, and as an incentive for independent optimization effort
by users. As we come to new conclusions,we plan to share optimization with users. See Q&A on page 4!

Our intent with this subset, initially brought to attention on a KVS
email hotline, is to give a timely preview of the larger table in Rel #949. We
needed to alert subscribers:there will not be a "return to
reality" by way of a major drop into lower and stronger bands than
those in this subset. The strongest zone, the Support Zone, bands #94 through
#98, with magnetic target counts in the 189-214 range, is not even shown in
this preview. Trading above the Support
Zone, in the 3 zones highlighted here, has become the new reality for
market timers. By the time#949
follows in January, we may no longer be calling 12200+ a “blowoff” zone. The DJI didn’t just shoot up into it, then fall
back. Since Oct 13, DJI 12000+ has been a daily occurrence.

The distinguishing feature of these highlighted bands is that 7 out of 9, a
convincing majority, have had the largest target
count increases since Rel #945. The
increase has been in the 34 to 49 range (see last column) in bands #101 through
#109. In contrast, the largest increase in any band in the Support Zone has
been 15. This means that buying support for some time to come, several months,
will be found primarily in the Transition
Zone, and even higher in the lower portion of the Resistance zone,
identified here as Res/Trans
(Resistance/Transition).Prime
importance of RANK is to users
of MAGOP
(Magnetic Bands Options Connection), our latest system, featured in Releases
#945 thru #948.

In order for this preview to be of most benefit, study Rel #945 which
gives you a full intro to Magnetic Bands.
These bands have been one of our major market timing assets since their
discovery over 27 years ago. If you do not have#945, or it's not handy, ask for it by email to kvshotlines@aol.com. Our
response will include an attachment which is a 4 page Word File.

KVS hotlines discuss
Magnetic Bands regularly, and forecast tops and bottoms using the focal numbers within the bands.
Current fees: $279/6 mos, $449/full year.Thank you for choosing KVS
systems and services.
More choices on page 4.

KVS #948P. 3

*******************************************************************

"OPTIONS 40 IN 4"- 11TH YEAR-2006 RECORD CONTINUES

WINNING TRADE RATIO:PLANNED 75%,ACHIEVED 78%

*******************************************************************

Near the end of its 11th year, Options "40 In 4"("Op40") continues to exceed both its performance
goals:1. A 75% win ratio:3 of 4
trades producing gains.2. An average
rise of +24% peroption, within 4
sessions.We set the second goal by
targeting this sequence for 4 consecutive, representative signals:+40%
... +40% ... +40% ... and -25% ...(+120 - 25 = +95,and+95/4 = +24).How goals have been surpassed is shown below and on the next page,
summarizing all performance periods to date.Each period is normally 25 calendar days but may vary slightly with our
publication schedule.

The 78% win ratio (1574
gains/2012 signals) exceeds the 75% goal. Average +33% rise (66820/2012)
exceeds the +24% goal.So that results
are not skewed by very large rises, we limit rises to +100%, and in computing RPS (Rated Performance Score)we make +80% the max (RPS = 0.5 for every
20%).The system prevents trades
likely to under perform, limiting some periods to 10 or less trades.Next page:recent record trade by trade.Anniversary Special!Order Op40 at the 1996 Charter rate
andreceive besides:3
months toll free voice,orEmailhotline.Your special combo fee of $545 is less than
the current $675 fee for Op40 alone.Hotline messages are your daily price source and learning aid, with
complete price data for the two SP100 options (one call, oneput) whose price action produces the
exclusive Trading Edge.Hotline computes the edge as well!

More Choices for Systematic Option TradingOptions “40 In
4”, better
known by its nick name “Op40”, has
been our most popularoption system
since its first year. We bring you a monthly update of both the long term
(previous page) and short term records (see above; latest period, beyond Nov 14
signal, is not complete, it will be in Rel #949).Major appeal of Op40 to option traders is that you learn the system, then maintain
a measure of control:you have elbow
room to make your own decisions whether to trade or not – depending on size of
“TE” (Trading Edge) – and whether to settle for a smaller profit quicker, or
try for a“home run”.Note in the performance periods above that
there were no fewer than 15 opportunities for gains of +55% or better.Different size profits are in different
columns, for an easy scan of the distribution of smaller and larger gains.What the Op40
logic does not give you is specific
entry and exit prices.If that’s what
you prefer, give today’s intro to “Magnetic Bands: Options Connection”a
close look.Ideas for using Op40 and “Mag
Bands” together:1.If both favor the same option with concurrent
signals, commit 1.5 times or even twice your usual $ amount to a trade.2. If Op40 does not have a tradable signal
but “MAGOP” does:trade the option choice of the latter as if
it were an Op40 choice.If you have yet
to acquire Op40, see special offers
on previous page.If you misplaced your
Op40 charter offer, restored briefly from 1996, it’s onour website www.key-volume.com or call for a Fax:877-350-3796.Order toll free:800-334-0411 x12K or send Email
to:kvshotlines@aol.com.Welcome to KVS products and services: starting our 38th year!

MAGOP System
Questions AnsweredQ1:Do results vary much from one 2 month period to another?A1: Variance since Sept 2005: Lowest win ratio 78%,
highest win ratio 92%. Q2: Does MAGOP use
stops to limit losses? A2: Not stops, but protective tactics which add a
certain % to low prices that follow buys, if considered low enough to be
warnings. When the Profit Guide
column (last in p. 1 table) shows a code starting with L, protective math was
invoked. MAGOP also uses time limits,
commonly 4 days, see TL codes in same column.Q3: What happens if the suggested
entry price is not hit? Try again next day?A3: No, if the entry price is missed, the signal is excluded from the
record. Buy orders are not repeated a day later: by then MAGOP is focused on new data for a potential new signal.

Q4: Are
there days when MAGOP recommends both a call and a put? A4: Yes,
infrequently. Most of the time the larger DJI swing gets the signal, but if two
patterns are equally convincing, MAGOP
tries to profit in both directions. See Nov 1, 7, 10 and 14 in the record. Q5: Will I know my MAGOP profittaking goal even before buying the
recommended option?A5: Yes, you’ll
get this from the Action Pointer (AP) code, which you look in the Trade Map to read out the complete
advice. Q6: How are Magnetic Bands
created and tracked? A6: Every DJI drop of 60 or more points is recorded.
When the starting point of a drop is exceeded on a subsequent rally, we use
special math to project 4 target numbers. They’re sorted into 50 and 100 point
bands. We examine bands daily and use them for support and resistance input to
our market top and bottom forecasts. See the recent email hotline feature in
the lower part of page 2.

How to Order
KVS, or a KVS/MAGOP package:For a 6
month KVS subscription, which brings one detailed release per month as the one
you’re reading, and 4 or 5 emails per week, fee is $279.For a full year it’s $449. You get market
timing, and intro to timing tools. KVS/MAGOP Package: Includes
$290 one time charge for the MAGOP
rules and Trade Map, and a KVS
subscription for 4 months for $199. Total $489. Daily MAGOP email is part of
the KVS hotline. How to Order “Op40”:See “More
Choices” above, under the performance tables. KVS/MAGOP/Op40 Combo:Separately the packages would cost $489 + 545
= $1034. If you order together you get a 7.5% discount: Net $956.For all orders, toll free: 800-334-0411 x12M.Email: kvshotlines@aol.com.Mail:Key-Volume Strategies, 46 E LincolnAve, White Plains NY 10604. Please print in lower left corner: Attn.
Scott, and also print the special offer code that we give you by email or phone
when you let us know that you wish to order. Thank you for choosing KVS
products as we begin our 38th year!

KEY-VOLUME STRATEGIES
INC.RELEASE
#945 MAY/JUNE 2006VOL. 37NO. 6

Dear Current or Prospective Subscriber
or System User:You get to view this
release several days earlier than those who need to wait for their first class
mail.This enables you to benefit from
educational features sooner, and gives you extra time to act on special offers
with a time limit (see pages 3 & 4).We’re pleased that we can now distribute our
material by Email and Internet, and give early readers
an edge.Thank you for choosing the
KVS family of investment products and services!

KVS #945 MAY/JUNE2006:“MAGNETIC BANDS”
INCREASE THEIR

OPTION TRADING PROFITABILITY WITH SPECIFIC ENTRY/EXIT
MODULE

If you seek to improve your investment results consistently, sometimes
“when you least expect it you’re selected” for a profitable
surprise.A routine update of statistics
on 2005 market turns and move sizes picked us for such a surprise last fall,
as shared with readers in #939.A KVS
invention from more than a quarter century ago, “Magnetic
Bands”, revealed an unplanned ability to generate large gains, in a matter of 5 or fewer days, from S&P 100 options.The stage for such gains is set when the DJI
rises or falls into a band which is the strongest or second strongest
in its zone.If you’re not acquainted
with the support & resistance mechanics of Magnetic Bands, look ahead to page 2 now.Then return here so that we may demonstrate
the increased profitability of “band trading” with index options, not only
for large gains – which may come only 2-3 times a month – but for much more
frequent modest profits as well, in the +25% to +65% range.Scan the record below, for starters, then read
on, for a detailed intro including special offers to acquire the “Magnetic Bands Options Connection.”The record shows all the signals for the first
two months, which were the basis for developing the rules, and the latest
two months,which will allay any fear
that what worked just fine last fall may not work now, because “the market
is different”.

What
Makes “Magnetic Bands” and Index Options a Reliable Profit Team?1. Recurring DJI swings in the 200-300 points
range, rewarding both sides of the market. See the DJI signal
triggers, and move sizes that led to them, in the first 3 columns.2. Most moves end in bands ranked 1 or 2, where
they are ripe for reversal. When exceptionally they are not,
our verification logic screens them out, and the record does
not include them.Moves then get larger, till a trigger gives
us a verified hit. (p. 4)

"Magnetic
Bands" In 27th YearThese bands have served us well with targets in both directions.How bands are built and maintained is a technical KVS/Stock Performer
invention, keeping track ofsupport and resistance ranges or "bands"
for active investors.Subscribers
have found a reliable "comfort zone" in the uniformity of each
updated table.But on Nov 11, 2003
we needed to surprise our readers because of what we called a "curious
recent development":it prompted a break from tradition, in the way we present the bands.We are staying on the new
track.Scan the table, but before you do: for easiest reading click on
your maximize symbol.

Compared to earlier
presentations as in #901/902, the break produced these differences:1. Shorter table: 26 bands today vs. 29 in #901/902.2. The new presentation has been stretching higher: top band was #86
in 901/902, #91 in 907/908, #95 in 910,#98
in 914, #101 in 934, and it’s #106 now.3.
In Aug 2003 the strongest band was 9400-9499 (#81).Since thenthe
same band has been the weakest!The curious development, responsible for our
revised content and emphasis, was the infrequency of market drops of 500+
points.Major shift
in magnetic bands support?We
concluded yes, but temporary.And
it has been:

Examples of exceptions that proved us right:1. From 10755 on 7/29/05 to 10098 on 10/13,
the DJI fell 657 points.2. From the
10/13 low to a high of 11179 on 2/17/06 the DJI rose 1081 pts.But we still expect moves under 500 points to
dominate by a decisive margin.Note
that within the 1081 point resurgence, 3 setbacks measured 321 pts (10483
to 10162), 304 pts (10998 to 10694), and 492 pts (11099 to 10607).Total setback points = 1117,
more than the entire resurgence
so far.The recurring prominence
of even smaller 200-300 point moves has been instrumental inour launching the Options
Connection, see p. 1.

Magnetic Bands:How Support &
Resistance Are BuiltBuilding blocks of the table are DJI drops
of 60 or more points, numbering 3018 thru 5/25, and corresponding rebounds
of at least 60.Magnetic Bands
allow you an arm's length view
of the market, 3 to 5 times a year, and to look ahead 2 to 4 months at a time,
as an extra dimension to your work with dailytools.

Here's how we get magnetic bands
and focal numbers for forecasting:When the starting level of a 60 point or larger
DJI decline is revisited or passed on a rally, the formula gives us 4 target
numbers: We sort them into 50-point DJI bands, and keep a target count
for each band.The higher the count, the more magnetic the band.Other strength factors: A big value
gap in a target count sequence, particularly where two zones meet, as bands
#92 and #93, and #99 & #100, makes both bands stronger.A sharp rise in target count, since the previous
table, also makes a band extra strong.Biggest
rises in target counts since Rel #942 have occurred in bands #102 and 103.We number 100 point bands low to high to give them an ID.The 50 point bands inside are marked HI 50, the upper
50 point half, and LOW 50, the lower
50 point half.An especially strong
magnetic band first pulls the market into it, then repels it
back into the nearest strong band above or below.Today's table is divided into these six investment
zones:

Upside Blowoff (bands 104-106),
Resistance (100-103), Transition (97-99), Short Term Support
(93-96),LongTerm Support (90-92), and Downside Blowoff(89
and below).Transition
means:repeating switching of the function
of these bands between resistance and support.Strongest band of each zone is flagged by double*.Other strong ones are flagged by single *.In bold
you see the corresponding most influential focal numbers.Each is the nucleus for
target concentration in a given band.Two strongest bands now are #95 (focal number
range 10859-10876) and #96 (10919-10944).Right end of the table gives you timing detail about swings in both
directions, numbered 1 to 7 for the most likely sequence of target
achievement.Trading
Budget AllocationThis is how much to keep in stocks, depending on the zone the DJI is
in:Upside Blowoff zone
50%;Resistance zone
60%; Transition
zone 70%;Short Term
Support 75%;Long Term Support80%;Downside Blowoff90%.Rest should be in reserve
(cash instruments), up to 20% of which can be put to work in index puts for portfolio protection, provided you use a system
regularly such as Op40 or the “Mag Bands Options Connection”. Otherwise limit your protection
to 10%.

KVS #945P. 3

*******************************************************************

"OPTIONS 40 IN 4"- 11TH YEAR-2006 RECORD CONTINUES

WINNING TRADE RATIO:PLANNED 75%,ACHIEVED 79%

*******************************************************************

Already in its 11th year,
Options "40 In 4"("Op40") continues to exceed
both its performance goals:1. A 75% win ratio:3 of 4 trades
producing gains.2. An average rise
of +24% peroption, within 4 sessions.We set the second goal by targeting this sequence
for 4 consecutive, representative signals:+40% ... +40% ... +40% ...
and -25% ...(+120 - 25
= +95,and+95/4 = +24).How goals have
been surpassed is shown below and on the next page, summarizing
all performance periods to date.Each
period is normally 25 calendar days but may vary slightly with our publication
schedule.

For easiest reading
of the performance table, click on your maximize symbol.

The 79% win ratio (1509
gains/1919 signals) exceeds the 75% goal. Average +33% rise (64160/1919) exceeds
the +24% goal.So that results are
not skewed by very large rises, we limit rises to +100%, and in computing
RPS (Rated Performance Score)we make +80% the max (RPS = 0.5 for every 20%).The system prevents trades likely to under perform, limiting
some periods to 10 or less trades.Next page:recent
record trade by trade.Anniversary Special!Order Op40 at the 1996 Charter rate andreceive besides:3 months toll free voice,orEmailhotline.Your special combo fee of $545 is less than
the current $675 fee for Op40 alone.Hotline
messages are your daily price source and learning aid, with complete price
data for the two SP100 options (one call, oneput) whose price action produces the
exclusive Trading Edge.Hotline computes the edge as well!

More Choices for Systematic Option TradingOptions “40 In 4”, better
known by its nick name “Op40”, has been
our most popular option system since its first year.We bring you a monthly update of both the long
term (previous page) and short term records(see above;latest period, beyond May 26, is not complete, it will be in Rel #946).Major appeal of Op40 to option traders is that you learn the system, then maintain
a measure of control:you have elbow room to make
your own decisions whether to trade or not – depending on size of “TE” (Trading
Edge) – and whether to settle for a smaller profit quicker, or try for a“home run”.Note in the performance periods above that there were no fewer than
11 opportunities for gains of +55% or better.Different size profits are in different columns, for an easy scan of
the distribution of smaller and larger gains.What the Op40 logic does not give you is
specific entry and exit prices.If that’s what you prefer, give today’s intro
to “Magnetic Bands: Options Connection”a
close look.Ideas
for using Op40 and “Mag Bands” together:1.If
both favor the same option with concurrent signals, commit 1.5 times or even
twice your usual $ amount to a trade.2.
If Op40 does not have a tradable signal but “Mag Bands” do:trade the option choice of the latter as if it were an Op40 choice.If you have yet to acquire Op40, see special offers
on previous page.If you misplaced
your Op40 charter offer, restored briefly from 1996,
it’s onour website www.key-volume.com or call for a Fax:877-350-3796.Order toll free:800-334-0411 x12K or send Email to:kvshotlines@aol.com.Welcome
to KVS products and services:our 37th
year!

Magnetic Bands:Options ConnectionKeep referring to the table with the record on
p. 1 as we continue:What makes Magnetic Bands and Index Options a reliable profit team?3. Band ranks tend to remain stable for as long as 4 to 5 months. For
the entire period from
Sep 2005 into June 2006, the table updates done in Rel #939 and #942 remained
effective generating option signals:the earlier table did
the job thru most of Jan 2006, and the later table into the current month.Now the signal source is the new table on page
2 of #945 herewith.This rank durability will be a special asset to subscribers with do-it-yourself
enthusiasm. While signals will come by email, already interpreted,
there’ll be those of you who’ll want to recognize them and work with them
independently.

4. Action Pointers: there are six basic
characteristics that generate the signals and associated entry & exit
rules.They lend themselves to a table driventrading action approach.Characteristics are conveyed by single letters
Q, M, D, R, S and X.If more than one
characteristic applies to the same signal, you see combinations such as QR
or MRD.Action Pointers
with their instructions appear alphabetically in a table we call the Trade Map. When you become a
Mag Bands Options Connection user, you need to keep your trade
map handy, preferably daily.Using
the map, the KVS Email Hotline can inform
you of signals easily, concisely, yet completely:which option, with specific entry & exit
instructions.The hotline also revises
exit goals as needed.5. Quick Turnaround:
Options respond promptly to most signals. One or two days of holding is common,
4 days is the limit.Multiple open
trades: infrequent.6. Basic Math
is the only “homework” requirement.The Trade Map tells
you how much to subtract from or add to the signal day’s closing (you know
this the evening before entry) for first
buy (NORM) and, exceptionally, second buy (Bargain).The second buy, even if the price is not hit
and is therefore [bracketed], is important to the exit formulas, the
two most common ones being:add 50%
to bargain buy, and add90% to bargain
buy.

How to Order, What You’ll Get, and
How SoonFor a 6 month
KVS subscription, which bringsone
detailed release per month as the one you’re reading, and 4 or 5 emails per
week, fee is $279.For a full year
it’s $449. Also includes market timing advice and intro to timing tools. Add
$210 one time charge for Mag Band Options Connection
rules and Trade Map, by
mid July.Total
$489 or $659.Phone: 800-334-0411 x12M.Email: kvshotlines@aol.com.Mail:Key-Volume
Strategies, 46 E Lincoln Ave, White Plains NY 10604. Lower left corner: Attn.
Scott, plus special offer code you receive when you phone or emailus. One time charge
$210 is waivedfor active users of the DTE 2006
system, no longer available to new users because of quota.Thank you!

KEY-VOLUME STRATEGIES
INC. RELEASE
#944APRIL 2006VOL.
37NO. 5

Dear Current or Prospective Subscriber
or System User:You’re
getting this release 3 or 4 days earlier than those who need to wait
for their first class mail.This
enables you to benefit from educational features sooner, and gives
you extra time to act on special offers, such as
DTE 2006, with a time limit. We’re pleased that we can now distribute
our material by Email, and give Email subscribers an edge.Thank you for choosing the KVS family
of investment products and services!KVS
Staff

KVS #944 APRIL 2006:SPECIFIC
ENTRY/EXIT PLAN “DTE 2006” CONTINUES ITS

SUCCESS.ALSO FEATURED: “5 MINUTE” TOOL,AND THE “OP40” SYSTEM

You may receive this release with a May postmark, but you are assured
of the special Early User’s fee for DTE 2006.We’re
in transition between mailing services.Our
current service Langerfelds’ needs to retire due to circumstances
beyond their control.For
over 30 years, Langerfelds’ has played an essential role in KVS
promotions and order fulfillment, assembling our mailings and speeding
them to investors.We’ll miss their reliability
and dedicationimmeasurably,
they were “part of the family”. We wish them our very best
in their move and retirement.In
their final mailing here for KVS, a large contingent is included with
whom we have not communicated for some time.It
would not be fair for anyone on our list to miss the
early user special.Therefore
we’ve postponed the price increase to
mid May.We had stated that
the reaching of 100 in the count of completedDTE 2006 trades would trigger the increase.At
mid March the count was 95.This
prompts us to reissue the detailed record from #943 below, as the common
basis for all prospective users to make their purchase decision.The
summary line does remind you that thru April 19 the trade count has risen
to 114.When#945 adds another month, the
early user fee will be withdrawn.Meanwhile the working copy will be shared
promptly with new users, and current users have been kept up to date
by daily email.

Profit Taking:Quick or Relaxed?“DTE 2006” uses
a 30% Quick Profit goal, which varies modestly
with rounding to executable prices, and by favorable openings.It’s user’s choice whether
to place open sell orders for day 1 and2
exits, or to be more relaxed about selling and wait till the opening
of the next day after the reaching of the quick goal, then sell.The “relaxed
tactic” may earn less gain, because the option has pulled
back.But othertimes there is a reward for waiting.Compare %GAIN totals in the
detailed record, as well as on the Expanded Summary line,
to help you decide which way you’ll go.

DTE 2006Features & Fees:Our latest invention, DTE (Daily
Trade Email) 2006 owes its good record to the teamwork of
two mechanical KVS option tools:“EOP” (Ease Of Profit formulas) from
last year, and the “2 Day Magnet”, a
new tool.DTE 2006 considers
call option trades the Prime Direction because of
the long term upward bias of the market. Each day it checks for a call
signal first, then a put signal if a call does not qualify.Put trades are flagged by * underEntry Date.Your
10 point checklist of features:1.
You get a trade plan for a specific index option for every trading day.If
there’s no new signal, you’re advised that this is the case,
and receive only an open position update.2. Email announcement the
evening before entry.

Favorite
of Many Investors Since 1999: The “5 Minute” ToolTo combine day to day
timing with large move signals,
the "5 Minute" Tool has
served investors with a high win ratio in up trends, down trends,
and choppy interludes.The
tool has three keys.How
can you get the complete package?With
a KVS subscription or an option system purchase for only a $70 surcharge.Key #1 is
a simple mathematical observation of specific DJI values,
just 5 minutes into the day.It
has foretold the direction for the day with an accuracy in the
60+ to 80+ percent range, giving buy signals for up days … (Recent record on p. 2,
more on p.4)

Already in its 11th year, Options "40 In 4"("Op40") continues to exceed both
its performance goals:1. A 75% win ratio:3 of
4 trades producing gains.2.
An average rise of +24% peroption, within 4 sessions.We set the second goal by targeting this
sequence for 4 consecutive, representative signals:+40% ... +40% ... +40% ...
and -25% ...(+120
- 25 = +95,and+95/4
= +24).How goals have
been surpassed is shown below and on the next page, summarizing
all performance periods to date.Each
period is normally 25 calendar days but may vary slightly with our publication
schedule.

The 79% win ratio (1489
gains/1893 signals) exceeds the 75% goal. Average +33% rise (63200/1893)
exceeds the +24% goal.So
that results are not skewed by very large rises, we limit rises to +100%,
and in computing RPS (Rated Performance Score)we make +80% the max (RPS = 0.5 for every
20%).The system prevents trades
likely to under perform, limiting some periods to 10 or less trades.Next page:recent
record trade by trade.Anniversary Special!Order Op40 at the 1996 Charter rate andreceive besides:3 months toll free voice,orEmailhotline.Your special combo fee of $545 is less
than the current $675 fee for Op40 alone.Your
hotline messages are a daily price source and learning aid, with
complete price data for the two SP100 options (one call, oneput) whose price action produces the
exclusive Trading Edge.Hotline computes the edge as well!

More Choices for Systematic Option TradingOptions “40 In 4”, better
known by its nick name “Op40”, has
been our most popular option system since its first year.We bring you a monthly update of both
the long term record (previous page) and short term record (see above;latest period, beyond Apr 4, is not complete,
it will be in Rel #945).Major
appeal of Op40 to option traders is that you learn
the system, then maintain a measure of control:you have elbow room to make
your own decisions whether to trade or not – depending on size
of “TE” (Trading Edge) – and whether to settle for
a smaller profit quicker, or try for a“home
run”:note in the performance period above that
there were no fewer than 5 opportunities for gains of +55% or better.Different size profits are in different
columns, for an easy scan of the distribution of smaller and larger gains.What the Op40 logic does
not give you is specific entry and exit prices.If
that’s what you prefer, give today’s intro to “DTE 2006”a close
look.Ideas for Op40/DTE 2006
teamwork: for those who have, or now acquire, both systems:1.If both favor the same option with concurrent
signals, commit 1.5 times or even twice your usual $ amount to a trade.2. If Op40 does not have a tradable signal
but DTE 2006 does:trade
the DTE choice as if it were an Op40 choice.Where
+ (plus) is appended to the date, one of the two teamwork conditions
applied.See the enhanced RPS score.One
RPS point represents a 40 to 59%move
by the selected option.If you have yet to acquire Op40,
see special offers on previous page.If you misplaced your Op40 charter offer,
restored briefly from 1996, it’s
onour website www.key-volume.com or
call for a Fax:877-350-3796.Order toll free:800-334-0411 x12K or
send Email to:kvshotlines@aol.com.Welcome
to the KVS family of investment products:our 37th year!

DTE 2006 Features & Fees(cont’d from p.1)6. Time limit is 3 days of holding,
but with most gains taken in 1 or 2 days.7.
Outright buying & selling of options, no hedging (“spreads” etc.),
no margin needed.8.
Availability of Early Use package that saves $150 (see below).9. Whiles rules are provided, they need notbe learned by users with a hotline subscription.Hotline
is the same provided to KVS subscribers ($449/1 year, $279/6 mos) but
there is a surcharge for the DTE section, which we detach and email separately
to DTE 2006 users($145/1
year, $90/6 mos). 10. System Support:For one-on-one Q & A, as well as for
orders, our Email address is:kvshotlines@aol.com.

Early User Specialwith 3 Months Daily EmailThis package gives you access to
the DTE trade plan announced daily.Since
DTE is linked to the KVS Hotline, you’ll also
get market timing advice and special features such Key #3 signals
from the “5 Minute” Tool . Package includes prime
direction trading rules $345 (one time), also contra rules for $100 extra,
plus KVS/DTE hotline messages for 3 months $199.Total
= $544 or $644.Either way
you save $150. Order number:800-334-0411 x12D.--
More insight into DTE 2006 logic: there are two components.(1)EOP(Ease of Profit formulas)
for determining, from 2 day option price rises, whether the call or the
put has more profit potential, and approximately how much.(2)“2 Day Magnet” (2DM):a specific price reached on the
2 day rise.The 2DM math
uses the price gap between 2DM itselfand
the last closing price, to refine the profit potential to specific entry
and exit prices.For system users who learned to calculate
EOP with the 2005 Supplement to Op40:there is no change to the math,
but the application of EOP values differs.

“5 Minute” Tool(from pp. 1 & 2) … as Mar 22
and Apr 3 (DJI up 82 and 36), and sell signals for down days as Mar 21
and Apr 11 (DJI down 39 and 52.)Key #2 is
an observation for verification, and at times the reversal of the Key
#1 direction.This key is no longer required because,
since the discovery of Key #3, traders who prefer to work
with only the larger moves, over 160 points most of the time, actually look forward to Key #1 being wrong!This is because for Key #3 to have a job
to do, Key #1 first has to be wrong for a day. Ifthe
Key #3 column is blank, the entry in the DJI
column was a gain for Key #1, as on 4/11:DJI –52
was a gain for a SELL signal;and
on 4/12DJI +40 was a gain
for a BUY.Key #3 had no
job to do, key #1 had a gain.When
the Key #3 column shows BUY or SELL, Key #3 had to step in with
that action to more than offset a Key #1 loss:with a gain at least3 timesas large,
in usually 2 to 5 days.In
the recent signal record on p. 2: observe the entries under Key #3 and Gain.Then look left to the DJI column:the DJI entry
on the same row shows how much the one day loss for Key #1 was.Examples:4/4 DJI close was +59, but the day’s
SELL signal called for minus;3/31
close was –41, but day’s BUY signal called for plus.

Now compare the Key #3 Gain to
the losing DJI change, and seeKey
#3 at work.Using Key #1 and Key #3 as a combo has produced winning signals 94% of
the time, see Combo column for Win:Loss ratio.How does Key #3 get its
revenge on behalf of Key #1?It repeats the
wrong-start signal from Key #1, within 3 days, and tries for a "triple",
and usually gets more.Examples:after
a 41 point Key #1 loss on the 3/31 buy signal, Key #3 gained 224.After
a 59 point Key #1 loss on the 4/4 sell signal, Key #3 took revenge gaining 277.If
the Key #3 gain is less than 3 times the Key #1 loss, the Combo column
nearly always penalizes Key #3 with a "loss" as on the 3/28
signal:Key #3 gained 224,
but this was less than 3 x 96, therefore the Combo column
shows a loss.So as not to
over penalize Key #3:If
the Key #1 loss was 200 or more, Key #3 has to make the loss good at
least 2 to 1, rather than 3 to 1.

"5 Minute" Tool:Intraday
and Two-Way ProfitsNote that a modest end-of-day change
can hide a snappy move of40 or more points during the day.To illustrate the two-way profit
power of Key #1 signals, the INDY (intraday)
column shows those intraday moves which exceeded the
closing loss in the opposite direction, or gained
at least 40 pts in the signaled direction.Thus
while Key #1 was officially wrong, intraday exits produced greater than
offsetting gains. Had we counted the intraday gains rather than
the closing losses in the Key #1 wins column, the ratio
would be boosted from 64% to above 80%.

Key #3: Entry & Exit LogicWe do not advise entry of Key #3
signals “at the market".Our
statistics from precedents suggest:1.
How many DJI points to subtract from a buy signal day's
closing, or add to a sell signal day's
closing, for initial entry.2.
How many points to subtract or add for occasional extra entry.3.
How many points of Key #3 “revenge” to try for.For both entry and exit, we use theoretical DJI readings as triggers.Users with no access to these can observe
the actual lows and assume theoretical
buy levels available 30 points lower;likewise,
30 points above actual highs, theoretical sell targets can be assumed
hit.We have worked with
theoretical DJI highs and lows for 36+ years:they
truly reflect overbought and oversold extremes.To
help you get Key #3 gains, the 5 Minute keys
come with Key #3 entry & exit logic.Add a modest $70 surcharge to your order for an option system (Op40 or
DTE 2006) or to a KVS (Key-Volume Strategies) subscription, and specify
that you wish the keys of the “5 Minute” Tool.Thanks
again for choosing KVS systems and services!

*******************************************************************

"OPTIONS 40 IN 4"- 10TH YEAR-2005 RECORD CONTINUES

WINNING TRADE RATIO:PLANNED 75%, ACHIEVED 79%

*******************************************************************

Already in its 10th year,
Options "40 In 4"("Op40") continues to exceed
both its performance goals:1. A 75% win ratio:3 of 4
trades producing gains.2. An average
rise of +24% peroption, within 4 sessions.We set the second goal by targeting this
sequence for 4 consecutive, representative signals:+40% ... +40% ... +40% ...
and -25% ...(+120 - 25 =
+95,and+95/4 = +24).How goals have
been surpassed is shown below and on the next page, summarizing all
performance periods to date.Each period
is normally 25 calendar days but may vary slightly with our publication
schedule.

The 79% win ratio (1412
gains/1792 signals) exceeds the 75% goal. Average +34% rise (60200/1792)
exceeds the +24% goal.So that results
are not skewed by very large rises, we limit rises to +100%, and in computing RPS (Rated Performance Score)we make +80% the max (RPS = 0.5 for every
20%). The system prevents trades
likely to under perform, limiting some periods to 10 or less trades.Next page:recent record trade by trade.Special
for October! “9 to 1 Edge Finder”, soon to cost $350 by itself, in a two-system
package with Op40 for only $645, less than the regular$675 fee for Op40 alone.Andreceive besides:Two months toll free voice,orEmailhotline package:Separate messages for Op40, and “9 to 1” plus
market timing,.Hotlines are a daily
price source and learning aid, with complete price data for the two SP100
options (one call, oneput) whose
price action produces the exclusive Trading Edge
and the “9 to 1” Edge.Hotlines compute the
edges as well!

More Choices for Systematic Option TradingIn the Op40 record above, if a signal date
is flagged + (plus):Extra gains were
availablevia teamwork with another KVS
option product:the“9 to 1 Edge Finder”,
featured in Rel #938.If you have yet to acquire Op40, see special offers on the previous page.If you misplaced the Op40 charter offer,
restored briefly from 1996, it’s onour website www.key-volume.com
or request by Fax:877-350-3796.Current special for Op40 without “9 to
1” :$545 including 2 months Options Hotline.
Our website is also a good source for recent KVS releases.To receive KVS releases regularly every
month, so we may cycle you thru our product line with features such as you
found in #938 & 939, special rates are $279 for 6 months or $449 for a full
year.Subscriptions also include four mini market letters per week
via Email hotline, teaching you how to work with Magnetic Bands,BigOne-Day Changes,Key-Dates, and other KVS
tools.Order toll free:800-334-0411 x12K
or send Email to:kvshotlines@aol.com.Welcome to KVS!.

Magnetic Bands Table(page 2) …target
count sequence, particularly where two zones meet, as bands #90 & #91, and
#97 & #98,makes both bands
stronger.A sharp rise in target count, since
the previous table, also makes a band extra strong.The biggest rises in target counts have
occurred in bands #95, 96 and 94, in that order.We number 100 point bands low to high to give
them an ID.The 50 point bands inside
are marked HI 50, the upper 50 point half,and LOW 50, the
lower 50 point half.An especially
strong magnetic band first pulls the market into it, then repels
it back into the nearest strong band above or below.Today's table is divided into these five
investment zones:Upside
Blowoff (bands 98-101), Resistance
(94-97), Transition (91-93), Short Term
Support (88-90), and LongTerm Support (87 and below).Transition means:repeating switching of the function of these
bands between resistance and support.

Strongest band of each zone is flagged by double*.Other strong ones are flagged by single
*.In bold
you see the corresponding most influential focal numbers.Each is the nucleus for
target concentration in a given band.Strongest band is now #95, with #94 & 96
in close pursuit.

With all 3 of the strongest bands pulling the market upward from short
term support, an up trend is likely for the rest of 2005, with a late year high
a few points from 10900. Right end of the table gives you timing detail about
swings in both directions, numbered 1 to 9 for the most likely
sequence of target achievement.Trading Budget AllocationThis is how much of your trading budget
should be in stocks, depending on the investment zone the DJI is in:Upside Blowoff
zone (11100-11499) 50%; Resistance zone (10700-11099) 60%; Transition zone (10400-10699)
70%;Short Term Support (10300-10499)
75%;Long Term Support
(under 10100) 80%.Rest should be in reserve (cash instruments), a portion of which can be put to
work in index puts for portfolio
protection.That portion should not
exceed 10% of your total reserve if you do not use an option system such
as Op40.Ifyou
do, the portion may be up to 20%.

1. Stock
must give back at least one third of its recent gain, made on a rallywhich included “Key-Volume”,a very high volume seldom reached by the
given stock.After the required
pullback, stock is considered attractively priced for a new rally of at least
25%.2. Insider buying has been
evident.

KVS #938
AUGUST/SEPTEMBER 2005:A
SYSTEM WITH 81% WINNERS

Yet we charge only $70, why?Introduction expanded from
#936

The “9 to 1 Edge Finder” (hereafter
called by its nickname “9 to 1”) made its debut with its
2000-2001 version, with the purpose of giving trading signals only when
there is a 90% probability of a quick gain: +25% or better
within 4 days, normally in 2-3 days.Too
much to expect?Admittedly,
we did not get it perfect.But
the error margin has been
rewardingly small.Perfect achievement of the “9 to
1” goal would have produced winners 90% of the time.The “real world” achievement has been
winners 81% of the time.More
than 35 years of system production and pricing experience tell us:

That should easily justify 5 times our price, or $350 instead of only
$70.This is particularly
so because we don’t mean an annual fee:we
mean a lifetime fee.You pay it once and you own a copy!We
have kept the fee lower than practical because the stringent 90% probability
requirement does make “9 to 1” a less busy signal generator
than our most popular system “Op40” (Options
40 In 4).However,
with fresh emphasis on second trades with lower
buys on single signals, plus no fewer than five 2005
innovations for more profit in less time, we do feel that
the time is ripe for a price revision:

The fee for the “9
to 1 Edge Finder” will rise to $350 in October 2005

Meanwhile you have more time to acquire “9 to 1” for still
only $70, a low enough price to consider it only a “bump” on
Op40 for extra capability.Two
key benefits from the two-system combo:1.
When “9 to 1” favors the same direction as Op40, you may
want to commit more dollars to a signal because of the 90% probability
of profit.2. When “9 to 1” buys into
a signal a second time, do this buy to add to Op40 profits.The
2005 record for “9 to 1”, continued from #936, has an extra POS 2 row for every second position.In
the Op40 performance record (p.4) note the significantprofit boost in period #129 from “9
to 1”.

Order the Current $70 Version, then Get the 2005 Version as a Bonus!This bonus is a $280 immediate gain for
you, the price difference between the two versions.Give
the 2005 table ascan (next page),
then we’ll complete the special offers:

Neither the trading signal logic, nor the signal
decision table supported on the KVS hotlines, is changing from the
2000-2001 version, thus there is no need to wait and pay a higher price.We still have room in the quota for the
original version at the $70 fee that’s about to become obsolete.Take advantage, it’s not obsolete yet!The innovations that will first be available
in the 2005 version have to do with more efficient
buy & sell order pricing, and reduced holding time.You’ll decide for yourself, after
you’re acquainted with the detail, that in any event the higher
fee is fully earned by “9 to 1”.The 2005 version will:

1.Lower the MAX buy (maximum buy price) so as to pay less than the next
day’s opening price (NXOP) in many
cases.

2.Lower the MID buy (mid point of buying range between NXOP and best available) with new formulas able to estimate
the best available price (BEST AVL) more
closely.

3.Narrow the gap between Best Sale and Targeted Sale prices.Maximum
target of the 2000-2001 version has been +57%, but note in the last row of
the 2005 table:average of best
available gains has comfortably exceeded +70%.

4.Use a 3 DAY time limit, infrequently 4.If day # in the last column of any “9
to 1” table is flagged by * a larger gain was available later but “9
to 1” decided to forego it, for faster reuse of capital.Up
to 6 days have been allowed previously.

5.Review as needed, at least quarterly, whether a market “personality
change” is distorting opening prices, and share appropriate buy pricing
changes with users.More about this on page
4, including our latest experience.

How Does “9 to 1” Work?After the close of each trading day the
system checks the day’s prices, and 3 day price patterns, in a certain
way, using two specific index options.Formulas
employ basic math to decide if there is a trading signal for a specific option,
nearly always one of the two just evaluated.Learn to determine the signal type on
your own, or let the KVS Hotline do it for you.Then
simply look up the signal type in a Decision Table, and place your orders
for next day to take the indicated action(s).Entry & Exit prices are given in narrow
ranges, often single prices for initial buy as well as possible second
buy.The KVS Hotline,
your choice of voice or Email, makes special comments as needed, particularly to follow
up open signals.

System SupportFor your first two months the KVS Hotline is required:it
will help you till the rules become second nature, to avoid any misinterpretation
and wrong option choices.If
you still have questions, you’ll have Email addresses and phone numbers
for Q&A.To continue with
this convenience past the 2 months:you’ll
get special renewal offers for 6 months and 1 year.Hotline subscribers also
receive comprehensive short term market timing advice
in the same messages, and in a 4-page feature on one or more systems or tools
once or twice a month:these
are the “KVSReleases”,
now in their 36th year

Signals since 8/25were
not yet complete at the publication deadline for this table, they will
be shown with full data in the next monthly table

How to Get Started with “9 to 1”To get the rules and start the hotline,
choose from:A. “9 to 1” $70,
Hotline 2 months $100, total $170.B. “9
to 1” $70, Hotline 6 mos $279, total $349 (less than the system alone
will cost soon).C. “9
to 1” $70, Hotline 1 year $449, total $519.No
matter which package you choose, you’ll also get the 4 page special
features described under System Support, and you’ll
get a free upgrade to the 2005 version within
2 months.Order toll free 800-334-0411 x12N orby Email to kvshotlines@aol.com.Already have “9 to 1”, or
you wish to order “Op40” for more trading
action?See p. 4.

KVS
#938 P. 3

*******************************************************************

"OPTIONS 40 IN 4"- 10TH YEAR-2005
RECORD CONTINUES

WINNING TRADE RATIO:PLANNED 75%,ACHIEVED
79%

*******************************************************************

Already in its 10th year, Options "40 In 4"("Op40") continues to exceed both
its performance goals:1. A 75% win ratio:3 of
4 trades producing gains.2.
An average rise of +24% peroption, within 4 sessions.We set the second goal by targeting this
sequence for 4 consecutive, representative signals:+40% ... +40% ... +40% ...
and -25% ...(+120
- 25 = +95,and+95/4
= +24).How goals have
been surpassed is shown below and on the next page, summarizing
all performance periods to date.Each
period is normally 25 calendar days but may vary slightly with our publication
schedule.

The 79% win ratio (1399gains/1777
signals) exceeds the 75% goal. Average +34% rise (59760/1777) exceeds
the +24% goal.So that results
are not skewed by very large rises, we limit rises to +100%, and in computing RPS (Rated Performance Score)we make +80% the max (RPS = 0.5 for every
20%).The system prevents trades
likely to under perform, limiting some periods to 10 or less trades.Next page:recent
record trade by trade.Special for
September!The “9
to 1 Edge Finder”, soon to cost $350 by itself, in
a two-system package with
Op40 for only $645, less than the regular$675 fee for Op40 alone.Andreceive
besides:Two months toll free voice,orEmailhotline package:Separate messages for Op40, and “9
to 1” plus market timing,.Hotlines
are a daily price source and learning aid, with complete price data for
the two SP100 options (one call, oneput) whose price
action produces the exclusive Trading Edge and the “9 to 1” Edge.Hotlines compute the edges as well!

More Choices for Systematic Option TradingIn the Op40 record above, if a signal
date is flagged + (plus):Extra
gains were availablevia
teamwork with other KVS option products such as the“9 to 1 Edge Finder” (see pp. 1, 2 and below),and the “5 Minute Tool” featured
in KVS #937.If you have
yet to acquire Op40, see special offers on the previous page, after the
table, and also in KVS #937.If
you misplaced the Op40 charter offer, restored briefly from 1996, it’s
onour website www.key-volume.com or request it from KVS Systems
Support:877-350-3796.Current special for Op40 without the “9
to 1” or

“5 Minute Tool”:$545 including 2 months Options Hotline.
Our website is also a good source for recent KVS releases.If a release is no longer posted, subscribers
are welcome to request it as a Word file attachment or by Fax..To receive KVS releases regularly (once
or twice a month) so we may cycle you thru our product line with features
such as you found in #937 & 938, special rates are $279 for 6 months
or $449 for a full year.Subscriptions
also include four mini market letters per week (every
night except Saturday and Monday) via Email hotline, teaching you how
to work with Magnetic Bands,BigOne-Day Changes,Key-Dates, and other KVS
tools.Order toll free:800-334-0411 x12K or
send Email to:kvshotlines@aol.com.Welcome
to KVS!

Market Personality Change?How index option prices behave at the opening, the
day after a “9 to 1” signal, becomes
important input to the “9 to 1” buy pricing logic.Since
late June an unusual number of inflated
openings caused missed trades for the 2005 test version.Our logic building was focused on high profit potential trades with an estimated Mid-Buy price of 2.35 or less.Mid-Buy is the
average of Max-Buy and Best Available.We underlined those
cases in the Mid-Buy column
(p.2) which show 2.35 barely available, or not available.When 2.35 was missed, an inflated
Max-Buy was usually responsible.We underlinedMax-Buy
prices of 2.60 or more on the same rows, for special attention. Remember
that Max-Buy is always the …

Opening price, thus never missed by
the current 2000 version, which buys at the opening rather than at a preset
price.But the 2005 version tries
to do better, not just for sharp shooting but also to give users the fringe
benefit of sometimes accomplishing in one trade what the 2000 version does
in two.Close look at a high opening handicap:8/5 signal was followed by opening at
3.10,requiring an almost 50%
drop to enable Mid-Buy at 2.35, to outperform the 2000
version buys at 3.10 and 2.10, average 2.60.Such
sharp drops after strong openings are rare, suggesting further studyto produce the most effective buy formulas.We’re
also doing a pilot on what we call “Early Conviction Trading” to
determine when a strong opening appears inflated, but it is actually safe to
enter, as after the 7/11 and 7/12 signals. We’ll take the rest of September
and early October to finalize the 2005 version, focusing on suspicious openings.This
gives the current low “9 to 1 Edge Finder” fee abrief extension.

VOLUME 36, NO. 5, BOB CONRAD, EDITOR

Dear Current or Prospective KVS Subscriber or System User:If youreceived Release #932 a short time ago, note that the record herewith is
for a full 6 months, and replaces the record in #932.If you have not ordered PSF/EOP yet, be
advised that the instruction memo series is not complete yet, therefore special
prerelease offers will continue to be honored.But little time remains, we advise you to take advantage without delay. We’re pleased to offer this repeat
opportunity.KVS Staff

“EOP” (EASE OF PROFIT) FORMULAS EXCEED GOAL:

+2376% ADDED TO “OP40” RECORD IN 6 MONTHS”

For 9 years a substantial
amount of extra profit remained untapped for users of “Op40”, the Options “40 In 4” system.All this time Op40 has been consistently
averaging a win ratio of 79%, and the
incentive to improve on this has been limited.But as the number of users increased gradually, we felt a growing
commitment to “enlarge the playing field”.Mid year 2004:we began a
concentrated effort with this goal, and persisted until we could deliver a supplemental option product which
can produce:

Profitable
trades from most signals with a low “TE” (Trading Edge):Too low for the basic Op40 rules to exploit.

What is “TE”, the Trading Edge?It is an Op40 exclusive:the
bread and butter of the “Options 40 In 4” (Op40) system.Each day after completion of trading on the
CBOE (Chicago Board of Options Exchange), exclusive formulas using
basic math go to work on the price action of index options in a
certain range.They narrow the large
options population to just two options:one call and one put.From the relative price action of these two
options “TE” (Trading Edge) is calculated.It is normally a number from 0 to 12.When TE is in the 5 to 9 range, trading the
option with the edge has been
reliably profitable, with never a losing year,
to the tune of +40% or more in 4 sessions or less.Therefrom the name:“Options 40 In 4”.

This was easy to be comfortable with, and we just “let Op40 roll” while
we redirected our system invention energy to other systems such as:“9 to 1 Edge Finder”,
“5 Minute Tool”, Natural Volatility (“NV1,
NV2, AV1”), “ODA” (One Day Advantage), “SPP” (Sell Price
Predictor) and others.But our
loyalty to Op40 kept reclaiming our attention like a magnet, with new bursts of
fascination for the untapped profits from low Trading Edges.Finally we simply “had
to” produce new logic to explore the hidden treasure.And we’ve done it!

The record on this page and next shows what the new “PSF/EOP” supplement has been
capable of with TE = 1,2,3,4 signals in 6 months since September 2004.“EOP” stands
for Ease Of Profit formulas, which any user
can calculate in 3 to 10 minutes a day.“PSF” stands for Profit Size Forecaster,
the logic that produces the trading signals, and entry and exit limits and
ranges, using the EOP numbers.The
record intends to show you not only the outcome of the 42 signals (37 gains and
5 losses) but our originality and thoroughness as well, so be prepared for some
short lived mystery as to the column content.As soon as you become a user it will all be revealed to you, so just
give it a scan and light study for now, to launch your acquaintance:

Time for a little more
description, before we complete the table on the next page.If you have Email, we just don’t have your
address yet, 6 months of Email hotline will be included with what we think is
an almost incredibly low priced early user offer: $410 if you already have
Op40, otherwise $690 which includes Op40, a prerequisite, as well.These fees have been superceded but are still
honoredwith the assumption that you
have not received a PSF/EOP offer before.Email Hotline Pinpoint Codes
will enable you to trade with PSF/EOP even if you don’t learn all the rules for
independent use.Are you nervous that
you haven’t seen losses yet?You’ll find
5 as you go on to the next page.Thinking about how much capital you’ll need?As little as $3000.Read on! (The TE=0 record will be released
after there’s a loss;so far 7 trades, 7
gains, +517% cumulative.)

Just as the parent product “Op40”, the PSF/EOP supplement buys index
options outright (no margin needed for hedges!), either calls or puts,
infrequently both, nearly every day.Most trades last 2 or 3 sessions(see DAY column near right end of table), with a limit of 5.After we complete the table, we’ll highlight
additional introductory comments from our recent Q&A record.You’ll learn from the Q&A that while our
prime development thrust was directed to low TE (Trading Edge)
signals, fringe benefits accrued to other system decisions as:knowing when to buy “at” the market rather
than try for less; when to stay with a suspiciously long same direction signal
sequence and when to trade against it ; and when to buy more on a dip, and what
size.

One more special insight for you:scan the Early Goal & Response
column.PSF uses specific criteria to
determine from the early
response of an option, on its day of purchase (day 1) and at the opening of the
next day (day 2), whether to adjust the initial profit % goal up or down, and
by how much.PSF rates the response Slow, Quick,Extreme or Danger.And it judges
the outcome of an apparent Whipsaw.PSF is capable of some
unexpectedly large gains by rarely advising sale on Day 1.

Step by Step Trading Rules:How
to OrderPlease see the last page of this mail or Email, which also updates the
performance of the parent product “Op40”.An Op40 signal date flagged by + (plus) was not traded by Op40, but was
traded by the new PSF/EOP logic:look
for those dates in the 6 month PSF/EOP record herewith.A separate page summarizes the long term Op40
record since inception in 1996.If you
have yet to order Op40 and you misplaced the charter offer, briefly restored to
enable an Op40/PSF/EOP package, go to our website for a refresher (www.key-volume.com) or call 800-334-0411
x12P and ask for a fax copy.Thank you for choosing the KVS family of systems and services!

Q: May I have a preview of the "Ease Of
Profit" formula? And how does it relate to Profit Size Forecasting?

A: The magnitude of 2 and 3 day option price rises, measured separately for the
put and call options used for daily Op40 signal determination, has substantial predictive value for
optimal buy and sell prices, not only for options in the direction of the
current signal(s) but in the opposite direction as well. Certain signals are
reversed, to deliver "surprise" profits in the other direction. The
remaining signals are left to the standard Op40 rules, most often if TE > 4,
or they invoke the greater pricing precision of the new supplement."EOP" is the new
formula for the measurements that make these improvements possible.
EOP values are computed daily, and remain in use for 3 trading sessions. We
call the body of existing rules and guidelines the Profit Size
Forecaster: PSF. In other words, EOP provides the formula, and PSF
uses it in actual trading. PSF decisions on trade direction, and on buy and
sell targets, are made so as to achieve the optimal profit size under the given
conditions concluded from an Op40 signal and its environment. That's why we
chose the name: Profit Size Forecaster.

Q: In what ways does the greater precision of the
new logic help Op40 users to more profit?
1. Op40:Prevents a number of trades
because of low Trading Edge:TE = 2, 3,
4

PSF/EOP:Generates a trade in most cases, usually
reversing the signal direction

PSF/EOP: Has special buy and sell rules for
high TE signals:TE = 8 or above.
8. Op40: Gains of 50% or more normally require sequence of 2 or more signals in
same direction.

PSF/EOP:Has rules for aiming high, independent of
same direction sequences

Full Method Review:Big One Day
Changes of 90 or more DJI PointsKVS has many original technical tools for
Market Timers.Learn one
right here!Is such a big
up-day a message that a new uptrend is underway, or a one day wonder that
improves prices for selling?Is such a
big down-day a message that we’re off on a new selling wave, or is it a trumpet
call for bargain buying?For the answer,
each occurrence must be evaluated
individually, using:1. Direction, 2. Size, 3. Sequence, 4. “PDPS”.Despite the appearance, we are not dealing
with random swings: there is a clear message
in each daily DJI closing that is down 90 or more points, or up 90 or more,
from the previous day’s close.Since
1998 there have been 625 such messages through Mar 22, 2005.The table below presents the 10 signals from Big One Day Changes so far this year:

Definitions:1. Direction: big up or big down day?We present rules separately for each
direction.2. Size: If the big change

is in the 90-159 range, the size
is moderate (M).If the big change is 160-229 points, the size
is large (L).If
the change is 230 or more, the size is extreme (X).3. Sequence (SEQ): Looking at only
days with big changes of 90 or more, SEQ = 1 if the change is in the opposite
direction from the previous; SEQ = 2, 3, 4, etc. indicate the second, third,
fourth or subsequent big change in the same direction.Past SEQ = 9 sequence numbering restarts with 1 whether the signal is in the opposite
direction or still the same.4. PDPS:
Points down since last previous sell signal, measured from the high on day of
signal or even higher point if reached within the next 3 days, to the signal
day low.We use theoretical
highs and lows for these measurements.If the new signal is less than 3 days past the previous,we measure points down from latest preceding signal, which occurred at least 3 days before the
new signal, so the high is not in doubt. Rise or fall shown for each signal
took place in 7 or fewer sessions.

sell signals from Big One-Day Changes:From up days, #1 through #5 in a sequence (U1, U2 … U5), and
again ifSEQ = 9 is reached (U9), the
signal is sell if Size = M or Size = X.-- From down days, if SEQ = 1 the signal
is sell (D1) if Size = M and PDPS <500, or without regard to PDPS if Size =
X.If SEQ = 2 it’s a sell (D2) if Size =
X and PDPS <500, or without regard to PDPS if Size = M.BUY Signals: From up days (U1 thru U9) the signal is buy if Size = L.Should the up-sequence reach 6:up to 3 signals may be buys (U6, U7, U8) even
if Size = M or X, provided one of these conditions is met:PDPS >349, or PDPS is in the 100 to 349
range, and signal day high exceeds the start of the drop from the last sell
signal.-- From down
days, if SEQ = 1 signal is buy (D1) if Size = M and PDPS >499, or without
regard to PDPS if Size = L.SEQ = 2 is a
buy (D2) if Size = X and PDPS >499, or without regard to PDPS if Size =
L.SEQ = 3 or more is unconditional buy
(D3, D4, etc.).

KVS/Stock Performer Mar 24
Hotline MessageProspective users of our market service, and option system buyers will be
equally pleased to experience that the KVS “mini market
letters” are frequent and specific.Example follows.One or two
“market releases” a month, and educational supplements as in #933 herewith,
introduce investors to our family of original technical tools now in their 36th
year, as those highlighted in bold in the
quoted hotline message.Each message can
be heard as a recording, or received in your designated Email box, by 11 PM, 4
nights a week. See next page for special offers.

“A new comment about the Key-Date Reversal outlook, along
with the highlighting of several stocks, is reserved for the Sunday Market
Update. We now call your attention to the latest signals from the
following:Key #3 of the "5-Minute" Tool:
No position was taken on the March 18th signal. A new buy signal was given
today. Its entry point is DJI 10373, and its type is FX5 or FX7, depending on
the number of positions taken.Big One Day Changes: A new buy
signal was given Wednesday. Its upside target is a minimum of 10787."9
to 1 Edge Finder": A new signal to buy the
Apr570 call, OEBDN, at Monday's opening. Use condition code "A" for
profit. The decision table code is W3SL1. The minimum target for the Apr550 put
is 2.90, with a high-risk range of 3.60-3.90.

Two-Way Signals: A new buy
alert for the market was given at Thursday's close, at DJI 10443. The maximum
DJI buy target is 10379. “Detailed
signal and entry/exit rules, for any given highlighted
tool,are available for only a $70
surcharge with a market service subscription.

*******************************************************************

"OPTIONS 40 IN 4"- 10TH YEAR UNDERWAY-MARCH/APRIL 2005

WINNING TRADE RATIO:PLANNED 75%,ACHIEVED 79%

*******************************************************************

Already in its 10th year,
Options "40 In 4"("Op40") continues to exceed
both its performance goals:1. A 75% win ratio:3 of 4
trades producing gains.2. An average
rise of +24% peroption, within 4 sessions.We set the second goal by targeting this
sequence for 4 consecutive, representative signals:+40% ... +40% ... +40% ...
and -25% ...(+120 - 25 =
+95,and+95/4 = +24).How goals have
been surpassed is shown below and on the next page, summarizing all
performance periods to date.Each period
is normally 25 calendar days but may vary slightly with our publication
schedule.

The 79% win ratio (1330
gains/1689 signals) exceeds the 75% goal. Average +34% rise (57060%/1689)
exceeds the +24% goal.So that results
are not skewed by very large rises, we limit rises to +100%, and in computing RPS (Rated Performance Score)we make +80% the max (RPS = 0.5 for every
20%).The system prevents trades
likely to under perform, limiting some periods to 10 or less trades.Next page:recent record trade by trade.Special
for 15 days only:choose our 2005
innovation, the PSF (Profit Size Forecaster)/EOP (Ease Of
Profit)supplement as
a package with Op40 for only $690, just $15 more than the regular$675 fee for Op40 alone.Andreceive besides:Two months toll free voice,orEmail"Op40" hotline:Your daily price source and learning aid,
gives you the open, high, low and close of the two SP100 options (one call, oneput) whose price action produces the
exclusive Trading Edge.Hotline does the computation
aswell.See next page for a $545 package.

Q: What are my ordering choices for “Op40”
and the 2005 Supplement? And what about your market and stock service?

A: If you do not have Op40
yet you’re welcome to this comprehensive package:Op40 + 2005 Supplement
(PSF/EOP) + 2 months options hotline by Email = $690.If you do have Op40
but you have just learned about the 2005 Supplement, you’re
welcome to the PSF/EOP pre release fee of only $155
in combination with a 6 month options hotline term for $255, total $410,
although the fees have risen.Hotline
will not remain an ongoing requirement, but you’ll be welcome to continue at
favorable rates because the hotline does report
PSF/EOP signals daily, with action(s) to be taken, and
references to rules for ease of learning and accuracy of interpretation.For Op40 and 2 months hotline without
the 2005 supplement the fee is $545.

36th Anniversary
Specials for Market TimersIf your emphasis
is on Market Timing and Stock Trading, we’re pleased to offer you special
subscription rates to the KVS/Stock Performer
service that recently began its 36th year:$279/6 mos or $449/full year.You receive one or two detailed presentations
per month on our original technical systems and tools, as in Release #933, and
4 “mini market letters” per week by Email (or recorded if you prefer).That’s more than 200 communications a
year!As a bonus
choose the 2005 Stock Trader’s Almanac which
focuses on seasonal market timing on 192 pages (value $40) or choose an extra
subscription month.800-334-0411
x12K or send Email to:kvshotlines@aol.com.Welcome!

========================================================

NEWSLETTER EXCERPT: SAMPLER FOR OUR MARKET AND STOCK TIMING

========================================================

*****************************************

OUR 1998 MODEL PINPOINTS 2002 BOTTOM

*****************************************

Those
who call our Market Hotline regularly heard our forecast for a
July/August 2002 bottom at DJI 7487.Our basis was:similarities between the final stages of the 1998 and 2002 declines. The bottom occurred on July 23 at 7490, just
3 points from our target.What were our
clues that similarities would give us a near bull's-eye?1. The final stage of both declines produced
11 big single day changes, 90 points or more, within a month.2. This wind-up period began, in both cases,
after buying support at 9100 failed.3. Both bottom formations included, just outside the wind-up period, 12
consecutive two-way signals, and this was a false indication of enduring
day-to-day profitability in both directions, giving way to a one sided
bearish resolution.--In 1998, as soon as 9100 was violated by100
points we observed the day's theoretical low, which was 8811.This was within the first 2 big down
days.We measured the additional drop
to the 7380 bottom:8811 - 7380 = 1431.In 2002 the matching low to 8811 was
8918.We simply projected the same size
drop for the 2002 wind-up:8918 -
1431 = 7487.We've had two
confirmations that 7490 was indeed the bottom:...(continued next page under stocks)

Magnetic
Bands:How Support & Resistance Are
BuiltThe building blocks of the table, in use for
22 years, are 2147 short term DJI drops of 60 or more points, and corresponding
rebounds of at least 60.Here's how we
get magnetic bands and focal numbers for forecasting:When the starting level of a 60 point or
larger DJI decline is revisited or passed on a rally, the formula gives us 4
target numbers.We sort them into
50-point DJI bands, and keep a target count for each band.The higher the count, the more magnetic
the band.We number 100 point bands
low to high to give them an ID.The 50
point bands inside are marked HI 50, the upper 50 point half,and LOW 50, the lower 50 point
half.An especially strong magnetic
band first pulls the market into it, then repels it back into the
nearest strong band above or below.Today's table segment is divided into 3 zones:Resistance (bands 74-83), Trading/Transition
(66-73), and Support (58-65).Strongest band of each zone is flagged by a double*.Other strong ones are flagged by *.In bold you see the corresponding
most influential focal numbers.Each such number is the nucleus for target concentration in a
given band.All targets are intraday
extremes, reported in financial statistics as theoretical
highs & lows.At the right end of
the table you find timing detail about swings in both directions, numbered from
1 to 7 to give you the most likely sequence of target achievement.

TRADING LIST AND BUY/SELL POINTERSSince #873 we have had to lower
the selling goals of most stocks because of a persistent bear trend that does not invite long holding periods. Reviewing the basics for new readers:all our selections meet the key-volume signal pattern
requirement, and charts show insider buying.For highlights and revisions call the Market Hotline
regularly.If you have no access,
choose from offers at the end of this page.Buy/Sell Pointers:1.
Always check the current goal for any stock bought from an earlier
list.2. Use this special sell
tactic if potential exceeds +45%:settle for two thirds the potential, but with a 60% limit,
then rebuy on a one third to one half retracement.3. Stocks that have risen enough to lower potential below
+20% may be bought only on a dip.

Bottom
Confirmations(from p. 1) ... 1. In 1998 the bottom
occurred on a big up day:up 288
after an initial slide.Likewise in
2002 the bottom occurred on a big up day:up 489 after an initial slide.2. In both years, within a week after the bottom, a second big up day,
near 400 points, followed.In 1998 it
was +381.In 2002 it was +447.Because the 2002 recovery is taking place at
a much faster pace than was the case in 1998, we'll make no further near term
forecasts using 1998 as a model.We
feel the best vehicle now to forecast both directions is the updated table of Magnetic
Bands on page 1.

Short
Term Market Swing SequenceThe subset
of the Magnetic Bands table that we show today is what we called the Bargain
Basement:the confidence repair
zone for jittery bulls, when in #874/875 we showed bands all the way up to
#103:DJI 11600-11699.As we go to press, a giant rally penetrated
into the Resistance zone, stopping in band #74.Note in our swing sequence numbering at the
right end of the table that crossing 8300 would have sufficed, then after a
pullback under 8200 bulls could have tackled 8600-8700 with a cooler head,
showing more conviction than impatience.Instead, we had an encore on "too much too soon".Thus, for the time being, the 1998 and 2002
parallels have parted ways.

"MRM":Major Risk Measurement GaugeA byproduct of the Op40 system featured on the next two
pages, "MRM" signals only 2-3 times a month, when the profit
opportunity in OEX put options is +100% to +200%.We have just reported by hotline that MRM = 13 and the OEX Aug405
put is the MRM choice, max buy 2.35 (closed at 2.40 at MRM alert time), buying
range suggested by MRM formulas is 1.80 to 1.35.Sell 200% above the lowest price reached.Because options move fast, best way to trade
with MRM is by calling our hotlines regularly, or by catching signals on your
own.

Anniversary
Specials, Grace Period:33rd Year
Continues!Start or extend a KVS/Stock Performer subscription,
two mailings per month and multiple hotline updates, usually 4 each week.Get the rules for trading signals from Big
One Day Changes, or "MRM" as your subscription bonus,
choose a full year for $449, or 6 months for $279.With the full year term you're welcome to both tools:a double bonus.Phone us to subscribe, or purchase "Op40"
or both:800-334-0411 ext. 12Mor useEmail:sterlingop40@aol.com.Thank
you for choosing our systems and services!

NEWSLETTER EXCERPT: SAMPLER FOR OUR MARKET AND STOCK TIMING

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RALLIES COME AND
RALLIES GO,BUT THE KEYS OF THE

"5 MINUTE" TOOL OPEN THE PROFIT
DOOR IN BOTH DIRECTIONS

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VOL. 34,NO. 13Bob Conrad - Editor

To
combine day to day timing with large move signals, the "5
Minute" Tool has served investors with a high win ratio in
uptrends, downtrends and choppy interludes alike, since 1999.The tool has three keys.How can you get them?By making them a bonus choice
with a subscription or an option system purchase, see offers on last page.Key #1 is a simple mathematical
observation of specific DJI values, just 5 minutes into the trading day, or as
soon thereafter as you can take the readings.Key #1 has foretold the direction for the day with an accuracy in the
64% to 85% range, giving buy signals for up days such as Mar 13 and 14 (DJI up
270 and 38), and sell signals for down days as Mar 4 and 6 (DJI down 133 and
102).

Key
#2 is an
equally easy observation for verification, and at times the reversal of the Key
#1 direction.This key is no longer a
requirement because since the discovery of Key #3 traders who prefer to
work with only the larger moves, averaging over 330 points, actually look
forward to Key #1 being wrong!This
is because for Key #3 to have a job to do, Key #1 first has to be wrong for a day.Now Key #3 steps in with the
task of more than offsetting the Key #1 loss:with a gain at least 3 times as
large, and seldom less than 235 points, in usually 2 to 5 days.Scan the table now, then return to study it
later:observe the entries under Key
#3 and Gain.Then
look left to the DJI column:when there's an entry in the Key #3 column, the DJI entry
on the same row shows how much the one day loss for Key #1 turned out to be at
the day's close.

Compare
the Key #3 Gain to the DJI change in the "wrong" direction,
and you'll see the revenge of Key #3 at work.Using Key #1 and Key #3 as a team has
produced winning signals 95% of the time, see the Combo column
for the Win:Loss ratio.If the Key
#3 column is blank, the entry in the DJI column was a gain for Key #1.The table which overflows to the next page,
continues the record from #887 with daily data for close to 5 months.Then your tutorial resumes, about this bonus
tool.

How
does Key #3 get its revenge?It repeats
the wrong-start signal from Key #1, starting within 3 days, and tries for a
"triple".Examples:after a 65 point Key #1 loss on the 2/7 buy
signal, Key #3 gained 395 points. After a 71 point Key #1 loss on the 3/5 sell
signal, Key #3 took revenge with a 398 point gain.If the Key #3 gain is less than 3
times the Key #1 loss, the Combo column nearly always penalizes Key #3
with a "loss" as on the 4/16 signal:Key #3 gained 415, but this was less than 3 x 145, therefore the Combo
column shows a loss.Two exceptions, so
as not to over penalize Key #3:(1) If
the gain is 500 points or more, it is an unconditional gain.(2) If the Key #1 loss was 200 to 250, Key #3
has to make the loss good at least 2 to 1 rather than 3 to 1.The table is completed from page 1 below,
then your introduction continues.

"5
Minute" Tool:Intraday and Two-Way
ProfitsNote that a modest end-of-day change can
mask a move of50 or more during
the day.The INDY
column gives examples of maximum moves during the day, from previous close to actual
best available exit for intraday traders:May 1 sell signal, for instance, earned 26
pts if held to the close, but max intraday drop was a greater 140;Jun 2 buy signal earned 48 if held to the
close, but max intraday rise was 153.For the two-way profit power of signals from Key #1, scan
changes in the INDY column flagged by *:each such change was a move supporting
the Key #1 signal for a move during the day, which was reversed by
the close.Intraday exits produced profits,
full day trades incurred losses.Furthermore, these intraday gains for Key #1 werelarger
than the closing losses.We counted
these as wrong direction signals, so that Key #1 could pass along a "revenge"
opportunity to Key #3.Examples:On 5/23 a 52 point down
move, correctly predicted by a sell signal from Key #1,
turned into a 7 point rise by the close.On 4/11 a 117 point rise, correctly predicted by a buy
signal from Key #1, gave way to a down closing of -18.When a profit of at least 50 was available on intraday
exit, or the early supporting move exceeded the closing loss, the > (greater
than) symbol before cumulative wins indicates that greater than that many
wins (and fewer losses) rewarded intraday traders.Win ratio for Key #1 rises to 781:133
from 585:329 after adjusting for intraday profits:85% winners.

Key
#3:Entry and Exit GuidelinesWe do not advise entry of Key #3
signals "at the market".Our
statistics from precedents suggest:1.
How many DJI points to subtract from a buy signal day's closing, or add
to a sell signal day's closing, for initial entry.2. How many points to subtract or add for
occasional second entry.3. How many to subtract or add for rare third entry.Statistics also suggest profit
goals, normally in excess of 3 times the Key #1 loss.For both entry and exit, we use theoretical
DJI readings as triggers.Users with
no access to these can observe the actual lows and assume
theoretical buy levels available 30 points lower;likewise, 30 points above actual highs,
theoretical sell targets can be assumed hit.We have worked with theoretical DJI highs and lows for 33+ years, as
they truly reflect overbought and oversold extremes.

We
are not revealing here the quantities of points to subtract or
add, in using the entry and exit formulas.We provide them together with the "5 Minute Tool" keys,
if you choose this tool as a bonus with a subscription or an option system purchase.If you have already received the entry &
exit guidelines through a prior order, continue to use them until we revise
them by mail or Email.If you have not
yet given us an Email address to speed such updates, do so now with a brief
request that includes your name, mailing address, phone number, and fax if
any.Email to sterlingop40@aol.com.

Major
Risk Reviewed:Should Bulls Rest Easy?A rare warning pattern of "Two-Way"
Signals (a regular Index Hotline topic) had been right 13 of 13
times since October 1999, when the pattern recurred abruptly on Apr
21 and May 1 this year.Clearly, no win
streak can last indefinitely.Nevertheless we projected a 900 to 1100 point market fall:a perfect record was suggesting
it.From 8173, which was then the recent
low, we called for a rebound to 8533-8641, then a decline no less than
811 points, the smallest on record from 13 successful warnings.The DJI did rebound, then hesitated near 8600
for about

3
weeks.Then it suddenly took off again
and crossed 9200 on June 6.A
shocker?Not if you follow Magnetic
Bands regularly.Timely study in
#893/894:band #79 for a top, and bands
#73 and #71 for most likely next bottom.We do not expect warnings #14 and 15 to incur losses.The DJI will return to near 8600, with a good
chance for 8475.

Content
that has been incorporated into the Op40 portion of our website and is not
duplicated here.

System
Support:Answers to UsersQ:"Op40" has just completed two more above average periods, and
maybe it won't be such smooth going in the next two.Should I use the "One Day Advantage" trading
principle, to make trade outcomes more certain?A:Let's
review the principle with excerpts from its charter invitation:"Have you been frustrated by a habit of
buying a little too high, or selling a little too soon, or too late?It won't take you long to realize that the One
Day Advantage principle may just be tailor made to help break such a
habit:Because the principle lets you wait
an extra day before buying into a signal.By then you'll know, unquestionably, what the best
buy price has actually been. How to use this remarkable
knowledge?Unless the option has acted
like a runaway rocket, what you'll be doing is buying the next day,
using the "One Day Late" formulas."Continuing:

Your
"Marker" is The SecretYour "marker"
for the success of each trade is the best price at which you could have
bought if acting on the signal without waiting an extra day.That extra day is your day of
advantage.Let's look at the "One
Day Late" formulas closer.After the close of your day of advantage, you compute on your own or you
get from one of our options hotlines a pair of momentum readings
from the price action of the option that had given the signal.The math is indeed simple:compute the percent difference between two
numbers.The teamwork between your "marker"
and the momentum readings decides how close to the marker, above
or below, to place your buy order the next day.At times the size of the Op40 "Trading Edge" is
a factor.The charter release of the
principle advocates a straight 40% profit goal, nearly always achieved a single
day later.

Put
differently, the principle "coat tails" on Op40 signals.If you use Op40 the standard way, you buy one
day after a signal.The principle lets
you "sit out" this day, to observe how low you could have
bought, then you buy near this already known price two days after the
signal, nearly always beating the standard Op40 buy price.After buying so advantageously, you'll find
that your 40% gain will hardly ever miss.The win ratio has been consistent near 90%.We expect this to hold up even during below average
performance periods for Op40.

Q:How might I use both the standard Op40 rules and the
advantage principle, together?A: After your first day into a signal,
use the "One Day Late" formulas of the principle for guidance
on continuation:you may exit early, or
hold for more profit, or buy again lower and sell at the target of theprinciple.

This
completes your introduction to KVS/Stock Performer and "Op40".We look forward to your joining us as a new
user!Thank you for choosing us.